Updated almost 13 years ago on . Most recent reply
Financing property for partnership
My good friend and I have an LLC in Ohio where we own outright a duplex that brings in a 10% return on our investment after expenses. Our business has no debt. My friend has moved to Tampa where he works for an adequate income and also has no debt. We want to buy a house there in Tampa. He would live in the house, but he wants us to be in on it 50/50, as we are on the duplex in Ohio. I personally have half the price of the house to put down on the property. It seems really difficult to get a loan for the business as compared to consumer. Even with 50% down I don't think the rate would be nearly as good. I'm thinking I should put the 50% down and he finance the rest (since he will be living in the house and he has plenty of income/no debt). Perhaps we setup a new partnership in Florida for this property.
Anyone have any insight into the best approach for this?