How do I buy homes with a friend?

[Shawn Luke]

Hi everyone,

My friend and I would like to start purchasing single family homes as rental properties. I'm struggling to understand how to start this process. I read about LLC's, and how its difficult for it to obtain loans. Also I read about these 'due on sale' clauses and how transferring a property to a LLC could be difficult.

So my question is: How can my friend and I buy a home together without being charged more for a loan and show a business entity as the owner, which my friend and I will be 50/50 partners? I am trying to see what options we have. If LLC is not the way to go, please advise different options.

Thank you for your help,

Shawn