All Forum Posts by: Leila Perez

Hello, we are getting involved with a money partner who will purchase the property in cash, then we will get a loan together to start building some duplexes in phases. We will have the ability to buy him out at any point. We (my husband and myself) only needed his funds to secure the property, but technically we could get the construction loan on our own. We are considering making a written agreement in which any time we either cash-out refi or receive profit from rent income, the funds will all go to him until his initial investment is paid back (the land cost), then everything after that is split 50/50. We will have 50/50 split ownership in the property. Does it matter if the property is legally owned by his LLC if we have a JV agreement between us? Or do we need to start a new LLC for our partnership and have the name of the LLC on the property title? This is our first time working with a private lender and doing new construction, so we see the value of working with someone who has experience to lessen our risk. Otherwise we would want to buy the land back from him immediately upon securing a construction loan on our own. Do you have any advice about this situation?