All Forum Posts by: Jake Long

Create an LLC - and have a revolving ownership strategy via restructuring the operating agreement. This document in your LLC entity, docs explicitly defines the percentage ownership of each member of the LLC and entity as a whole. You can change this as many times, as you would like to obtain and many loans as he would like.

Just some food for thought - some DSCR lenders are better priced right now than conventional lenders on investment properties.

You might find this is a good opportunity to start shifting, leaving your 10-conventional open for future when rates get better on that side. 

You can close in an LLC with these loan types, and typically you can select your guarantor as well, depending on entity structure and lender requirements.

May be wise timing to at least look into it :)

@Jake Long if you are both members of an LLC, even with ownership split evenly at 50/50, you can alternate who guaranty's a loan. This is done routinely with multiple DSCR and fix-and-flip programs.

You will both receive 'credit' for owning the property though because you are members of the LLC that owns the property on title. Soft credit pulls and closing in the LLC should leave no trace of the transaction on your credit/DTI.

So you’re putting the partner with nothing to lose on the mortgage? (In case of a crash like 2008 or a rent moratorium like 2020 only that partner will owe the money, have their credit wrecked, and be responsible for any shortages. So they’ll just declare bankruptcy?) Do they get a larger share of the profits?

If you are using conventional financing, that should not be an issue. You can have only one person on the loan but both be on title. How many financed properties are you and your partner currently at?