Multi member LLC partnership with a residential mortgage

[Vlad Taralunga]

Hi all,

I have a pretty specific question. I have 2 investor friends and the 3 of us currently in the process of purchasing 2 properties, 2 quads. In the interest of having the smallest number of people on mortgages and getting the best interest rates, we were thinking of a single partner buying each property, then transferring it into an individual LLC that would be jointly owned by all 3 partners. So partner 1 buys property A in their personal name with a residential mortage then puts it into LLC A, partner 2 buys property B in their personal name with a residential mortgage then puts it in LLC B, then partners 1, 2, 3 are equal owners in both LLC A and LLC B.

The question is with this structure would we be able to claim mortgage interest as an expense in each LLC if the mortgages are in the personal names of just one of the partners.

I would appreciate direct answers to the question. Please no why do you need to put it into an LLC, why do you need 2 LLCs, why do you need partners, why don't you get commercial loans etc.

Thank you in advance.