Joint Venture Model

[Tom Sahar]

Hello BP.

As part of me and my partner plan to establish a Joint Venture with an investor, we are moving forward with purchase of a property in JV model.
We would appreciate clarification on the following points:

1. Questions Regarding Property Registration Restrictions in a Joint Venture Model:

• Are there any restrictions when attempting to change the property registration with the county (through the title company) if the property has an active Hard Money Loan or DSCR Loan?
• We plan to register an additional LLC (of the investor) that will hold 50% of the property. In return he will place the down payment, closing costs and IO payments during the HML.
• If the property is initially purchased by one LLC (Ours) and there is an active loan on the property, is it possible to register half of the property under the name of the investor's LLC as part of our model?

2. Registration and Financial Considerations for the Second Company:

• Is it possible to register the second LLC on the property (as part of the 50%-50% model) if it does not yet have an EIN (Employer Identification Number)?
• While the second LLC does not yet have an EIN, can we temporarily operate using only the bank account of the first LLC (which also holds the property)? How could this impact tax matters for both companies and the Joint Venture as a whole?

We would greatly appreciate your guidance regarding any requirements, limitations, or recommended procedures in this context.