How To Structure Financing With an Investor

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Hi BP Members,

I have an investor who will provide me with the down payment on an investment property. I will manage the deal and receive a portion of the equity in return for doing so. My questions is how do I structure financing for something like this? I originally wanted to take out the mortgage under my name using my investor's funds but, this doesn't seem possible without the investor having to pay the gift tax on the down payment when he gives it to me to invest.

Any tips for how to structure this deal in order to move forward? Would we need to form a join LLC? A limited partnership? Any help is greatly appreciated, thank you!

We prefer to do these types of transactions by forming a manager-managed LLC. We will then do a joint venture agreement and set up the operating agreement for the LLC. The tricky part will be how the lender will want the ownership structured, best to go into detail with the lender on what they expect.