I along with 3 other individuals are looking to pool our resources together to acquire a multifamily rental property. we're curious which legal structure is better, LP or LLC? each of us will likely contribute equal amounts, if that has any bearing.
Talk to a local real estate attorney, they are many regulations that might apply specifically to your area.
+1 on @Priscila Argaez 's advice. But even before that think long and hard about getting in bed financially with 3 other people. It really is like getting married... unless you each have clearly defined responsibilities so that everything which needs to be done is covered by someone, and then on top of that have a structure to buy one or more of the partners out of the deal in case things don't work out between you all.
One of my favorite sources of properties is feuding partners who are willing to sell below market just get away from the others in the deal, don't become one of them ;)
thanks for the replies. We are set to meet with a real estate attorney soon. I was hoping to gain some insight (and potentially build questions to ask) into what others have done in their dealings before meeting with the attorney.
from what i've read on biggerpockets, most posts refer to using LLC's. which leads me to believe that structure may be the best. we're in virginia/north carolina, where there are no quirky rules around LLC/LPs (from what we know)
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