Member loan to LLC instead of buying rental in the LLC

[Javier S.]

Hi,

I am trying to understand member loans to an LLC that will contain a rental property. Let's say the member's loan is to buy 50% of the property, and that the member will be paid back principal and interest over time. Does the member own 50% of the property or the LLC? Once the loan is repaid back to the member fully, then does it mean he does not own any part of the property or has 0% membership in the LLC? I guess I am just trying to understand this concept of loaning to the LLC instead of outright buying the rental property in the LLC. Thanks.