I have a home under contract in my LLC and am partnering 50% with someone. We both want to protect ourselves, especially my partner, as he is concerned that I could do whatever I want with the property since it's in my LLC. Anybody have an idea how we could devise something to legally state our positions in this property?
family limited partnership
We have done it multiple ways....
....adding the partner to the deed after you close
... draw up a basic one page outline of our agreement, payments, profit splits, payback, etc. The partner who is not on deed gets a mortgage roughly equal to half of the expected ARV.
Little late to the party, but I'll give you my $.02
I've always structured with multiple LLCs - for example, my master investing LLC is BTR Holdings, LLC. The property, 123 Main Street, would be owned by 123 Main Street LLC. 123 Main Street LLC would be a JV LLC jointly owned by BTR Holdings, LLC, and my silent money partner (or their LLC). That way, they hold equity in the deal, but they still have no ability to screw anything up! When I refinance, or sell the property, I buy their interest out of the LLC.
Hope this helps!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!