LLC, TAX questions on Investing Partners

[Vijaianand Thirunageswaram]

Howdy? I have situation where 2 friends are planning to purchase a property. Property is already under contract under both their name. When we are trying to get funding from lender, we were thinking about putting both of them under the loan. But mortgage broker suggested by uncessary adding liability on both their credit lines. Why can't one person buy it and be responsible for the loan and create a LLC later to move the property to LLC and tackle the partnership later.

I talked to CPA and she is said that's not going to work. One guy owns the liability and LLC owns the property and he sells the share to another partner for 50% of the LLC which is 50% of the down payment. She says, still the Partner A has full liability on the property and Partner B only paid part of down payment and owns 50% of the LLC is not fair as per tax.

What is the right way to do? Since the property is already under their contract and title will be in both their name. We want to see how finance responsibility can be split as well. We don't want to create LLC and getting loan on LLC won't be easy. That's ruled out and that's why we are going as individual loan/.

Any thoughts and suggestions?