Accountant · NC · Member since 2017 · 64 posts · 26 votes
I have some friends/family interested in partnering in real estate. I have the credit to qualify and they are willing to put in enough for the down payment. Their goal is to make some extra money utilizing my experience and credit. I will analyze the property, negotiate, manage the property, and screen tenants. I am open to this because I don't have to use my funds and it allows them to achieve their goal. My questions are:
1. What would be fair equity split in this case?
2. If equity, do I need to add them as a limited partner in the LLC (would create a new LLC)?
3. Would this be better to structure as a loan from them and pay interest?
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
6y
My opinion: if equity, you should own more than half. I'd recommend going the lender borrower route though. They aren't doing anything except giving you money so that's more of a loan. That route is also much much cleaner than JV or LLC.
but yes if you go equity route they need to be an llc member or have both your names on deed.