How to structure a purchase with a family member and LLC

2 Replies

Hello BP Community,

My wife and I have an LLC in Florida which we currently own one short term rental in and we just had an offer accepted for a 2nd which we will split with my aunt who lives in Boston. We advised the realtor to write up the offer in the name of the LLC as well as my aunt (who is not apart of the LLC). We will be paying cash, 50/50 split so we will not finance. With all the recent tax changes, what is the this the best way to structure the purchase. Her reason for investing is she likes the area and will plan to visit in the winter and also to help us out as we are also considering investing in another multi family property and have limited cash reserves to fund both deal.

Thanks in advance for any advice.

Regards,

For her the best bet might be to form her own LLC and have the two llcs take the property has tenants in common. You could also form a joint LLC that is owned by her and your LLC 50/50. Either would likely work about the same.

I agree with Jeffrey's post, it will create a double layer if you run into litigation issues in the future. Good Luck

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