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!
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