Partnership management on Rental Property

[Arun Kumar Balasubramani]

I bought my first rental property along with my partner. Currently, the deal is 50-50. My partner is doing the loan and i will pay him 50% on all the expenses. Once we rent that, Its going to be 50-50 on the profit or loss.

My plan is to get a business checking account in both our name and ask the tenant to transfer the Rent . So we can maintain the accounts.

Looks like i have to create an LLC to open a business checking account. Is there any way i can open an account without LLC? Or is the LLC route is the best route?

Any other option to make this work? I also want to have a legal share on the Property, How should i do that?

[Michele Wax]

Whose name is on the property now?   You said you bought with the partner. 

IF you get a DBA you can get a checking account. DBA- Doing Business AS.

IF you get an LLC started you have to make sure that the loans verbiage lets you move it to an LLC. Most do not let you do this.

As for how to get your name on the property it depend s what is on the deed and on the loan.  

This should have been done at time of purchase and right now if your name is  not on it you are on you own, if the partners name is solo he owns it and you own nothing. 

I would also make a quick run to legal zoom and make a partnership agreement.  This should have also been done before the property was purchased. 

BE very careful.

According to what you have said it looks like if you invested any cash you have nothing to prove you own it.  

Carts go behind the horse and right now your cart is a mile in front of the horse. 

Good Luck and let us know how this works out.