Acquiring Properties With Different Partnership Structures

[Gabe Goudreau]

Hello, 

I have a few questions about acquiring projects with different partnership structures. 

I know a common practice (at least for syndications), is to create a separate LLC for the property and then raise capital once the deal is already under contract. How does everyone go about getting the property under contract before that? Do most people get the property under contract in a single-member LLC and then assign the contract to the syndication LLC during the DD period? Going along with this, is this different if you're acquiring a smaller deal with just a singular partner?

Would love to hear some input from the GPs out there on the most efficient way to do this.

Thanks! 

[Brian Burke]

I get into contract in my operating company and then assign the contract to the new LLC prior to closing. There is a provision in all my contracts that permit me to assign the contract to a newly-formed entity that I control. It's a common practice and I've never had any opposition to this provision.

If you don’t have an operating company, you could get into contract in your own name and then assign it.  Consult with competent legal counsel to guide you regardless of your choice here.