Two names on title only one on mortgage?

Question

Hello...new to the site but lurking for a year.  I have a question on how to set up a system with my dad for purchasing investment properties.  Essentially, he has a good chunk of cash, a few properties he purchased with all cash but he has terrible credit.  I on the other hand have great credit, a couple properties but low on cash.  We want to form a partnership where he supplies down payments and I qualify for the mortgages (in my name only) and then add his name to title after closing.  Is there anyone out there who has run into this and made it work?

Bill Gulley · Answer

@Joseph Johnson .

Setting up a system? Are yo holding properties in a LLC, that will require some different tactics.

Holding them personally is fine. You can buy as you described.

Since this is your father, you can use a quit-claim or a special warranty deed, but, you need to modify these standard deeds to reflect the interest conveyed. If you just use a QCD in a standard form, you'll be setting title in his name.

So you need, I assume, to specify it to granting of a one half undivided interest.

You can also inform your lender that you are setting off that interest as an estate planning matter with your father which will keep any due on sale issue out of the picture. :)

Steven Hamilton II · Answer

Yes, you can do this.  I recommend adding him via a quit claim deed after the fact just because some banks may have a problem with it.

Alan Russell · Answer

I have not done this on investments however, I just closed a home with only myself on the mortgage (wife doesn't work) and the wife was placed on the deed at closing.  I would think you could just say you wanted your dad on the title and but you will be have sole responsibility for the mortgage.  I could be wrong but I don't see why the bank would really care about your dad being on the title.

Two names on title only one on mortgage?

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