Partnership / Loan Details

[Breanna Hughes]

Hello!

I have been presented with an awesome opportunity to purchase my neighbors home way below market value. The plan is to partner in on this deal with my mother, who can front the down payment, and I will pay for renovations, manage contractors, and get the property rental ready. We plan to be 50/50 equity partners.

I plan to continue to scale my real estate portfolio so I can reach financial independence, and she does not have plans to grow a real estate portfolio. My main question is- should we both get our names on the loan (conventional), or should I let it be under her name only so I don’t have credit issues in the future? 


We plan to sign a partnership agreement, so I would assume that would help us maintain equal rights even with the loan in her name, but I am not certain of the requirements. Additionally, we do not have an LLC at this time but are interested in setting one up in the future.


Any advice on the best way to proceed?

Much appreciated!!