How to handle this QCD?

[Sharad M.]

Hello all,

Just wanted to see if someone can help me with this situation.

I have a REO under contract in my LLC name that I am going to QCD to my friend who wants me to help him find an investment property.

I am planning to purchase the property in my LLC name, but he will be funding the purchase and all the repair cost. He will reimburse me for any out of pocket expenses and once the house is move in ready, I will QCD the property to his LLC.

As far as accounting for this transaction in concerned, what is the best way to set it up? How do my friend and I record this on each of our books?

I was thinking the best way would be to show the house as asset and the funding as liability at purchase and when I do QCD, I would do a reverse entry to make it all zero?

I am going to be checking with my accountant also, but thought I see if someone here has dealt with something similar?

Thanks for your time.

Sharad