Vacation Rental in Rincon, Puerto Rico

[Brandon Cohen]

Hi All, I've been looking at purchasing a vacation rental in Rincon, PR...a beautiful small surf community I've vacationed at for years.  I would be going in on this with a friend, and was just informed that in PR if you're married the spouse has to be on the loan.  We're both married, and prefer to not have our wives on the purchase (too many chefs in the kitchen).  Does anyone know of this and if there's any way around it?  

That, and if anyone has any insight (positive or negative) on the PR market, it would be greatly appreciated.  Of course, the real estate agents say the market in Rincon specifically is not as affected as other areas.  

Brandon 

[Victor Chico]

@Brandon Cohen: PR is a community property state. Your wife will have to be on the loan. If you have a prenup, then you can show it to the bank and they will not require her signature and you can register the property in your name only. Make sure the Property Registrar states on the deed that it's your private property.

The option of an LLC which @John Quiles mentions is an option. However, I think it will be difficult to get the loan with the LLC as guarantor. A workaround would be to put the property in the LLC's name and also provide a personal guarantee for the loan.

You will need to check with a lawyer if you are worried about how this will affect everyone's rights in case things go sour or someone dies before it's all paid off.