Best way to structure partnership for starting out

[Jeffrey Fecko]

My Wife and I are looking to buy an investment property with her brother in the next year or so. The idea is that we each contribute 1/3% of the startup cash needed. What is the best way to structure our company legally? Is a traditional mortgage still a route we can take if we create some kind of company that doesn't have any existing cash flow? 

[William Sing]

Hi Jeff, I would talk to a CPA and Lawyer of course but it sounds like an LLC would probably work best. Just make sure to talk to a lawyer about making an operating agreement and make sure everything is laid out in terms of what if X happens X people are responsible.

As for the mortgage, are you looking to have it in your name or a specific group member's name? You can have the loan under the business name but you may need to be a personal guarantor. Talk with a couple of lenders about the products they have and what the requirements would be. You may be able to get some better financing if it is in someone's name and then you transfer it into the LLC as well.

Hope this helps!