Looking for Insight on Business Structure for a REI Company

[Amy Lieu]

I co-manage a small, family-owned real estate investment company that has four owners. For operational ease, our operating agreement states that I have the ability to be the sole signer on purchases and sales, among other things. However, lenders and some title companies still require that all four owners  fill out the detailed loan application processes and sign all closing documents. Getting the four owners available at the same time or to finish tasks within a certain time frame can be difficult and occasionally causes timeline delays.

I am wondering if there is a way we can create a holding or managing company that can manage this LLC that would allow its manager (me) to purchase/sell properties and apply for loans without needing the involvement or information of the original LLC's owners.

Thanks for reading! I would appreciate any insight the BiggerPockets community has about this.

[Luis Alvarez]

@Amy Lieu One possibility is to set up a limited (family) partnership (Pship), the current LLC would act as the limited partner and could receive the chunk of the profits/losses but because that LLC (and by extension, its owners) is a Limited Partner, there is no action it could take or sign on behalf of the Pship. A side LLC, acting as the General Partner, could handle all the management and enter into contracts/agreements on behalf of the Pship. Additionally, if it makes sense and a CPA advises, the General Partner (LLC) could be treated as an S-Corp.