Partner Legal Structure

[Zachary McIlvoy]

Hi all. I have spent a lot of time on the forums without seeing a great answer to what I am trying to do. I have one property right now that I own, and am looking at moving in to more with money from some interested friends. So what I want to do is have myself and 3-4 others all go in on a given property. (Buy and hold) However it seems the only way to properly protect everyone legally involves an LLC, and thus losing my ability to get market rate loans. Am I missing something? How should I approach this?

[Theo Hicks]

Will these 3 to 4 others only bring the capital or will they have other responsibilities? If they are strictly passive investors, you will need to work with a securities attorney. The added legal costs will likely make the deal no longer make financial sense. 

If all the investors are also actively involved in the deal, it is a JV.