Looking to raise capital for STR in Savannah

[Zack Eastwood]

Hello, BP! This is the first time that I will be raising capital from investors for rental property. My strategy is to have my investor to get a second home loan (10% down payment) and put the property in their name, then deed the property into an LLC that is owned 50/50. I am going to make the partner essentially a silent partner bringing the money and I'll be bringing the operational side of the business. Is this something that anyone else has done with partners? If we decide to sell the property will it be based on the agreement in the LLC or is it at the discretion of the person that has their name on the property?

Thanks for any help,

Zack Eastwood

[Kevin Luttrell]

In response to other posts here, if you look through some past BP posts you'll see plenty of people are happy to put up 100% cash as a silent 50/50 partner. All depends on the return - if someone is looking for passive income and can get a good ROI with a 50/50 partnership with a partner that will do 100% of the work, then it could be worthwhile.

To answer the question about deeding to an LLC after closing, that's so they can get Conventional financing with 10% down (Fannie/Freddie won't close a mortgage under LLC).

@Zack Eastwood If you set this up and deed the property to a 2-member LLC, then the LLC will receive the proceeds when the home is sold in the future. Your ownership and structure of the LLC will determine who gets what. Should be part of your operating agreement.