Partnership on already Owned SFR

[Jake Williams]

Hey all! I am an investor out of Minneapolis and my wife and I are nearing the completion of a live-in flip. Our plan is to convert it to a rental and buy a new personal residence. I have been in discussions with my brother about partnering on REI and we thought that we could start our partnership by going 50/50 on this live-in flip we are finishing.

My question is, has anyone taken an existing property (100% owned by one partner) and changed the deed to include their partner and then performed an exchange of funds to accomplish a 50/50 split? What are the tax implications on a money transfer when one partner buys into a property in this manner? Are there other ways to accomplish the same goal?

Thanks for any advice!

[Tim Swierczek]

@Jake Williams you need @John Woodrich to reply.  My question would be to ask why you would partner on it at this point? How much equity do you have?  Would you carve that out?  How much cash do you have into the deal?  On the surface, it seems like your overthinking it and you may be harming your position.