Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
Hi,
I’m considering a partnership with my next rental purchase, and this would be my first partnership.
Do you form an entity for the property such as an LLC taxed as a partnership before acquiring the property? If so, what type of loan is used? Or do you buy it in one partners name, then transfer title to a partnership after?
Investor · Springfield MO · Member since 2023 · 30 posts · 21 votes
2y
I have done partnerships in the past and we normally draw up an LLC and then find the property to buy since it's pretty cheap and good to hammer out any details beforehand. If you purchase first and then add 2nd owner after it can be done. It also depends on loans that you are trying to qualify for depending on credit, experience, and other factors. DSCR loans are a great option for 30-year fixed rate!