Questions on taking title for a Tri-Plex

[Christian Rasmussen]

Greetings BP! 

My first question on these forums... =)

I am securing a Tri-Plex with seller financing (contract for deed - great deal - family friend) within the next couple weeks. This is my thirds rental, but will bring me up to 5 units as my other two rentals are SF homes. 

I have a company (with a business partner) that holds/owns the two SF rentals I have - and it is my hope to be able to have the Tri-Plex owned by the company. I would like to have my company sign the contract for deed immediately although there are some concerns and questions. 

The seller wants a larger DP if we decide to take title under the company. He said it like this, 'I trust you fully - I know you wouldn't default. However, I don't know your business partner and for all I know he could bring down your business.' So he wants a bigger DP if the company takes title. Which is fair - but I my not have the cash for what he's looking for. 

I'm also going to be personally paying the DP. If the property went into the company's hands I would 'Loan' the company the DP and have my company pay me back monthly with interest. 

Here's my question. If I end up needing to take title under my name, and I provide the DP and decide to transfer the property over to the business eventually - Is there a way that I can start getting paid back immediately for the DP even though the title won't transfer for 5 years (balloon payment)? I would like the payments to start immediately after paying the DP, and I would like all cash flow to go to the business. Can I keep the property under my name but show that all income and expenses from the property are received and taken care of by the business? Or will I just have to take everything personally and transfer to the business when I refinance when our balloon is due? 

One of the big things for me is the ability to get my DP back in monthly installments from the day I take title until I'm paid off (all my working capital is, well... working). I would really like to make this work.  

Keep in mind the company is a two member LLC. So I don't own the company outright - It is split 50/50 with my business partner.

Let me know your thoughts! How would you do it? Any similar experiences? 

Thanks so much 

-C