How to decide lien position with two private lenders

[John Geldert]

I have found a deal and it will be purchased with a partner as a JV. Now if we both bring in private money how do you decide who gets 1st or second position? I currently have an LLC in which the house can go under. Also if we are unable to sell the home in say 6 months to a year, how do we go about refinancing to pay back our lenders?

[Bill Gulley]

John, if the property is held in an LLC you don't need liens filed. Your monies are contributions to capital in the business entity, you buy assets with combined capital, the share of ownership of assets is described in your operating agreement for LLCs. The accounting of capital assets and liabilities goes to owner's equity that is shared under your operating agreement. There is no mortgage. Need to see an accountant and your attorney as to the operating agreement terms and obligations. :)