How should I structure a partnership if purchasing w/ a friend?

[CT Nguyen]

Hello all,

I'm currently on the market looking to purchase the first MF investment property with a friend of mine. Below is what I'm thinking on how to go through this deal and was hoping if anyone can provide feedback. I am a RE agent in MA and own 2 other investment properties. This will be his first, and my first time purchasing an investment property with a partner, reason being we want to bring our funds together and do 25% down.

1. Both of us get pre-approved and have our names on the same mortgage 

2. Go through the usual process - offer, inspection, appraisal, etc...

3. Put both of our names of the deed. 

At the same, create a LLC with both of us as co-owners. We won't be able to qualified for a (commercial) loan with our LLC since it's so new.

4. Once closed, transfer the deed to the newly created LLC

I already have a LLC with only me as the owner for the other 2 properties that I own, so this will be an additional LLC to keep things separate from my partner.

Anything that you would do differently? Any feedback would be very much appreciated!