Need Advice/Ideas on How to Structure Purchase

[Curtis H.]

Hi BP, I'm looking for some ideas on how to structure a purchase. Background: my father, brother and myself have between us about 30 properties in the town where my father lives. My father cares and manages for all properties as my brother and I are not local. We are all financed through the local credit union. A family friend has offered us a very good deal on a fourplex he needs to get rid of as he needs the cash. My brother and I would like to get this property 50/50. I need him to partner with as the bank will probably require his income as my income will be insufficient. On the other side he needs me as I can provide most of the down payment. We are seeing this as a buy and flip in 1-2 years. The issue is my brother will be buying his own house within the same period and does not want to have the debt associates on his name when that happens. What we have thought of so far: we buy the property and are on title joint 50/50. I provide most of the down payment and put the whole mortgage under my name and he co-signs. This way, we are both on title, and when it comes time for him to buy his house, we pull his name off as a co-signer and he should be good to buy his own house. We may be able to sell it before this point which solves the problem, but if we can't sell it before then, it loses a problem. So this could all work but if the mortgage is in my name, then I get all the interest deduction and he gets none which isn't great. Sorry if this is a very confusing post, I hope somebody will be able to understand. We are just trying to think of other ways we could structure this deal. Essentially we both should be on title but he can't be on the hook for the mortgage in 1-2 years. Another option is I just buy him out when he needs to get out but I don't want to do that. We each couldn't buy the property ourselves and need each other to get this purchase. It could be quite good $50-$100k profit in 1-2 years. Let me know what you think Curtis