Limited Partnership Structuring

[Jarrett Duncan]

Hello BP,

I'm wondering if anyone can shed some light on how they have structured partnership agreements in the past?  I'm trying to structure a deal on a 4plex I'm under contract on.  My partner is funding most of the down payment and closing costs as a limited partner. However, the bank is requiring his name to be on the mortgage since he is providing the down payment. Additionally, they are requiring his name to be on the title since he is on the mortgage. 

This is an issue because I was looking to setup a LP with myself as general partner and him as a limited partner and keep his name off the title, thus eliminating his liability, but this is preventing me from doing so. I also know we run the risk of triggering the due on sale clause if we try to quit claim the title to a LLC. I'd love to hear any insights/information anyone could provide that would help me work around this issue.

Thanks!

Jarrett Duncan