Structuring partnership deals
I have a couple money partners and I have set up the following structure. Hoping for some feedback and suggestions on improving this or what other people have done for structuring the deals.
(1) Set up a parent LLC which is owned 50-50 with my money partner.
(2) set up a subsidiary LLC for each property purchased, which is 100% owned by the parent LLC.
(3) purchase properties personally with myself and money partner on title and note.
(4) quitclaim deed the property to the subsidiary LLC
This structure was recommended by an attorney to isolate each property for liability reasons and to keep books, etc separate. If a property needs to be sold, also easy. Anyone using something different? Are there problems I’m not anticipating?
An alternate would be to set up one parent LLC that acquires all properties.
My business plan is to buy and hold rental properties long term and to keep my partner in the deals long term 10-15 years until properties are paid off. Maybe even longer.