Can you put 2 LLCs on a purchase agreement?

Question

I have been talking with friends in the real estate space about housing flipping. Many are interested in partnering. However for liability reasons I don’t want to flip without a LLC.

Am I able to buy under my LLC and they buy with their LLC so both our LLCs own the flip jointly? I would like to avoid starting a LLC with the person if possible. How do you structure partnerships on paper?

Account Closed · Answer

My opinion: (your mileage may vary)

You each can have a separate LLC or use your name, but do a Joint Venture not a Partnership. You can split the profits 50/50 but make the ownership 51/49 so the one with 51% ownership can make decisions if the project goes south. A 50/50 is a deadlock and nothing gets done when one disagrees with the other.

Have you taken the time to read two very good posts?

All my REIs are in an LLC! Why am I being personally sued?

https://www.biggerpockets.com/forums/926/topics/1097903-all-...

DO You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .

https://www.biggerpockets.com/forums/311/topics/1098136-do-y...

Devin Peterson · Answer

Why don’t you just make one new LLC and split the ownership 50/50 on the operating agreement? Lender will only allow you to close under one entity anyway