Legal Entities & Partnerships | HELP!
Hi Everyone,
I am looking for advice regarding my current situation. I am ready to purchase a deal with a partner, however we have hit a bit of a roadblock. I am a current US Resident but my investor partner is still in the UK so has requested that we form some sort of Legal Entity before we start acquiring properties.
From my understanding, we will not be able to obtain financing for a newly formed LLC and transferring the properties into an LLC after purchase will trigger the “due on sale” clause - although I have heard that many lenders will not care too much about this. I have also heard that I can personally back the loan for the LLC which I don’t mind doing. Are there any other legal partnerships/contracts we could create to state that my partner has an equal stake in the properties?
What are my options here? If anybody has any advice on this it would be much appreciated.