All Forum Posts by: David Easley

Thanks Joe. That's helpful. 

Yes. The LLC is owned by both. So we could probably get away with shifting it to the LLC after the sale? Any risk of the mortgage envoking a due on sale clause?

I'm going in on a 50/50 partnership on a house that will be rental. We're going to setup an LLC to manage the house through, but we wouldn't be able to get a loan in the name of the LLC.

Should we both have our names on the mortgage and both have our names on the title of the house? Or does that matter? Can one of us do that and we just develop some kind of contract outside of that regarding shared ownership?

Thank you Bruce. That is helpful. When you say he brought the money, was that an actual capital contribution to the partnership, or did he lend the money to the partnership?

I have (I think) an ideal partnership situation. I am very knowledgeable on home renovation, know the local market, have past business ownership experience, and am an activator type personality. My potential partner has more available capital than me, is highly organized/administrative, and brings a more cautious eye that will help keep me accountable.

How do we think through profit sharing, especially when they are likely brining more of the cash to the table? Do we make a 50/50 partnership and then the partnership borrows money from my partner? Or do they "own" more of the business because they are brining more money to the table? 

I'd love thoughts and stories on how to best set this up!

Thanks JD. That is helpful. We currently have hardwood, so I'm planning to demand full replacement. Those parameters are helpful. 

Mary, recycled is a great idea. In our market, that would likely be seen as a selling point. 

Thanks for input. 

JD, what is the logic behind narrow planks?

My wife and I are planning to move across town and turn our current house into a rental. The rental market in our neighborhood seems to be strong and it is higher end so should have solid tenets. Unfortunately (or not) we had a water leak that damaged our hard wood floors and will require them to be replaced on the insurance companies dime. Open concept floor plan. Flooring covers foyer, dining room, and living room.

Question: This neighborhood will demand hardwood or an equivalent.  Thoughts on the ideal flooring for a high end rental house? Alternatives to HW? Colors/types of hardwood that will hold up well?