Join Venture with foreign nationals and 1031 exchange

[Daniel Suarez]

Hi All, 

I have a multi-family under an LLC with my partner that we plan to sell and 1031 exchange for another bigger multifamily. The other LLC is much more expensive and we plan to join forces with another foreign national LLC. Since we're doing a 1031 exchange, the new property would also be under the original LLC, not including the foreign nationals in the title.

Our plan was to buy the property with the original LLC and get a commercial loan with the original LLC (the title and credit will be under me and my originals partner's LLC) Once we do that we plan to form a Joint Venture where all of the income and proceeds of this property will live and it will include the foreign national members.

The reason we would do that is because getting credit with foreign nationals is very hard, and the new property needs the same owners needed originally. I would love to hear some thoughts on this. Thanks so much in advance.