Partnership with family - Do I need to create an LLC?

[Katie Panzica]

HI BP Community - I'm a newbie investor and trying to strategize a few different ways to purchase my first few properties. I have some funds I can use as a down payment for a SFH but to get into a multi family or purchase multiple SFHs I was thinking of working with my dad to get additional cash for more down payments and potentially also co-sign with me on loans if needed. I've seen people mention that it's a good idea to create an LLC when you are in a partnership with someone on a property and wondering whether this would be a good idea or whether it would really be needed for a family partnership or if a partnership contract is sufficient. Pros/Cons? Any advice would be appreciated!

[Landon Bleau]

Katie, the most recent episode of the BP Rookie podcast was all about partnerships, it will definitely be worth your time if you're considering a partnership. As for the LLC, though most would say it is a good idea, it is not necessary. Many just get large umbrella policies to protect themselves.