All Forum Posts by: Jacob Thompson

Could someone help me understand how lenders decide terms for financing a partnership?

In my case, I'm on the verge of creating a partnership. My prospective partner and I both have strong credit scores, and we both have good liquid funds. However, my credit ratio is weak, and his credit ratio is strong. We'll be 50/50 partners.

So what will the lenders say? Will they care that my credit is largely tapped out if my partner has tons of credit available?

Will the terms of the loan as far as interest rate goes be based on the strongest person in the partnership, or the strongest combination of factors (e.g if one person has cash and the other has credit), or on the weakest?

Thanks.

Hello:

To this point, I've always bought investment property as an individual. I'm about to form a partnership to buy property with someone, and I'm not sure how the 1031 rules might apply here.

1. Can I take investment gains from a property I own as an individual and do a 1031 exchange into a new partnership that would own new property?

2. After I make gains in the partnership, can I 1031 those back to personally owned property?

Thanks.