NJ vs Arizona LLC - Flip in Arizona

[Matthew Passero]

I am working with a couple of investors who are based out of New Jersey and want to purchase, rehab, and flip a property in Arizona. One of the investors is going to contributing cash and one is going to take out a mortgage for the property. What would be the best structure to set up this LLC and in what state?

- Do we set up the LLC in Arizona or New Jersey?

- Do we purchase the house via the LLC and have the one investor 100% guarantee his personal mortgage?

- Do we have the one investor purchase the home and the LLC will collect and contribute the other capital required for the investment?

All parties are friends so all will do whatever is in everyone's best interest and most protection. 

[Costin I.]

@Matthew Passero

1. They are not going to be friends for long - you don't do business with friends, and flipping is a business.

2. But if you want to proceed, read How to Effectively Conduct Joint Venture Agreements as a Real Estate Investor and taking-on-partner-s-and-limiting-our-liabilites. 

3. Checkout similar threads on the matter: how-do-i-properly-construct-a-purchase-with-a-partnership and create-an-llc-for-first-partnership-best-way-to-do-so