Investing with a Sibling/Best Friend ... LLCs... Considerations ?

[Justin Kushner]

Hello, BP Community!

"Long time listener, first time caller" hardy har har... I really look forward to hearing what you all have to say about this one.

The backstory: My brother and I are best friends and great business partners in general, when it comes to most things. We want to begin acquiring rental properties under a joint LLC that we both go 50/50 on. He lives in New York, I live in Florida.

I've already spoken to a number of Lenders (e.g. Wells Fargo, Watermark...) who tell me that I cannot purchase an investment property into an LLC at the time of Closing, and that it during closing my name, not an LLC name, must be on the Loan/Contract. These lenders also tell me that while I can move it to an LLC after the purchase, however, they technically could call the loan from me and require it to be paid off in full or moved back under my personal name. This is unlikely, they each said, and likely my only way of doing this.

So my questions! :

How are LLCs acquiring rental properties with Financing? 

Or, are they buying them cash without Financing? 

Do any of you have any experience going into Rental Property Investing with a Partner, and setting up the Framework for success? PLEASE PLEASE share your recommendations before we get seriously underway!

Thank you, and sorry for what I'm sure is a seemingly basic question.

-Justin

Miami, FL