Partnering on a Property

[Dario Mormina]

Hello, myself and a partner identified a property and are in contract. The thought is that he would secure the financing in his name, then post closing, deed the property into an LLC that we have 50/50 ownership of. I would then pay him back for half of the closing costs, and be liable to cover half of his debt via contract.

Very new to partnerships, does this sound reasonable?

Thanks.

[Richard Bechtol]

Depending on what your goals are you might want to look into a structure such as an LLC or Series LLC for the property. The due on sale clause issue can likely be avoided with a trust of some sort. Also, with a partner you would want a good operating agreement in place to cover all possible issues that may arise down the rode. These can be between partners or event he eventual passing of one of you. A good business structure can help alleviate most of that.