Help starting out with a partner

[Andrew Singh]

Hello,

My friend and I would like to get into long distance real estate investing (ideally a multifamily in the PA area). We are splitting it 50:50. Most of the resources I have looked at cover information for a single investor. I was hoping for some guidance/suggestions on the steps involved with regards to a partnership. Advice on filing an LLC, obtaining the mortgage, and the title of the house would be greatly appreciated.

Also if there is any good references for this type of situation available, directing me to them would be really helpful.

Thank you

[Mark Munson]

Hi @Andrew Singh

If you are using an LLC, I assume you would be using hard money (short-term loans) and/or DSCR loans for long-term holds? If so, the property will be vested in the LLC with either one or both of you as guarantors. Whether it is one or both as guarantors depends on the lender. Some allow a member that holds at least 25% of the entity to be a guarantor and they will be the only one with their credit pulled, while other want majority ownership to guarantee the loan, so in that case it would be both of you. Feel free to reach out if you need advice and best of luck!