- But I have a family member (Brother or Parent etc...) who is interested in putting some money into it.
- Total start up costs (Down payment + closing costs, furnishing, getting started on Airbnb etc...) = 200k USD
- Family member wants to put in 50k USD of the start up costs, but doesn't want to be on the hook for the mortgage.
How would you structure that deal? What is typical? Do they only get a portion of the equity of the house? Do they get a portion of the mortgage? Or is it a portion of the all in business venture?
Lender · Winter Park, FL · Member since 2021 · 737 posts · 412 votes
2y
I'm not an Attorney but you could set up an LLC (Parent Company) that is owned 50/50 by each of your own respective LLCs (You own 100%). One of the LLCs the own 50% of the parent company can take out the mortgage and that LLC owner would be the one who signs on behalf of his LLC. Hope that makes sense.
Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
2y
Hey Eric - I would do this as 1) gift funds and you are the sole owner or 2) make an LLC with the two of you and put them as a 24% owner so they will not have to sign onto the loan. Pretty easy to do either!