Investor · Jamaica, NY · Member since 2013 · 18 posts · 0 votes
Hi,
I am looking to buy a multi unit with my dad and then transfer to me. I am using him because of his rental history on tax returns so banks can use the projected rental income of the property that I'm buying.
What is the best way to get the property back to me?
Syndicator and Fund Manager · Victor, NY · Member since 2012 · 760 posts · 345 votes
12y
Buy it in an LLC. Take full control of LLC.
Regardless. He's still going to be required to guarantee the loan and your lender might require notice of material changes in ownership.
Is it really just his experience that you need or do you need his balance sheet as well?
If you have enough credit and liquidity to get the loan on your own then you might get away with a management agreement with your dad.
The banks say that they can use 75% of the projected rents of the building that I'm buying if the buyer has at least 2 years of rental history on their tax returns.
Me and my wife could barely qualify on our own but using 75% of the potential rents would double the payment on a 20 year loan.