Loaning money first and then buying into existing LLC

[Umang Patel]

HI all,

I need some help and advice with some of the investment strategies I am planning on doing. Some of these strategies are due to family tension, and hence there's no way around it. I am pretty new to this, and need to what do I need to be aware of, any clauses I should include in contracts, etc.

I am trying to invest in a property with my cousin, and 4 other partners. Initially, I suggested to form a 50%-50% LLC with my cousin, and buy a 20% stake in the property (10% each between my cousin and I). Due to family problems, he does not want to do that, and instead include his wife in the LLC as a 50% partner in LLC. The problem is, he does not have enough money to buy a 20% stake in the property, so he wants me to lend money so his LLC can buy 20% stake. Then after everything is done, and after 4-5 months, I would buy out his wife's stake in the LLC, but won't have to pay since I already loaned him the money initially. So, 20% stake in property is $200k. He forms LLC with his wife, and I loan him $100k. Then few months down the road, I "buy" into his wife's 50% portion of LLC.

1. What kind of contract do I need to form when I loan him the money? Any things I should be aware of? 

2. When I buy into his wife's portion, I technically won't be paying anything since I already loaned 100k. How does that work out? Would she just get out of the LLC and I join?

3. Any ramifications on depreciated basis, etc.? He wants me to buy into LLC before buying taxes.

Thanks! Any thoughts or advice welcomed!