All Forum Posts by: Parker Whiteway

Thanks Drew!  That is helpful.  

Hi Evan, thanks for the quick response.  

I put those scenarios in as an example and perhaps it's an unlikely example...  but the part I don't get is the order of operations (which I assume would be common to most partnerships regardless of how profit and cash investment are split)...  such as

Who puts down EM? Can I put down EM and get under contract (me personally) and then later bring in a partner and assign the title to an LLC?

If it's a cash deal, does the cash have to come from the LLC directly or could it be paid from the partners?

If there's a conventional loan involved, who's name goes on the loan, who's credit gets checked? Who goes on the title? Is it the actual persons or the LLC? In what order does all this happen?

I have a few units now that I purchased on my own using conventional financing, and another cash only (Michigan 2010!!) so I'm familiar with the purchase process but I'm striking out when I try to figure out the fine print of how it works with a partnership...   it seems like this info should be out there somewhere but I've been unable to track it down.  I imagine it can vary state-to-state which is why I figured I'd post in the Chicago forum.  Thanks again all

Hi All,

I've come across a couple of buildings I want to buy, but don't have enough money for both. I hear a lot about people partnering up with a money person to do these deals, but I'm completely in the dark about the details of how this works. For example, who's names go on the title? At what point does an LLC or other instrument get formed? Whose credit gets checked if there's a loan involved?

Can someone talk me through how this would work?  Let's say for instance I'm trying to structure like this: 

Scenario 1:  
Person A:  Provides 100% of cash.  Basically no other responsibilities.  Assigned 50% of any profit.

Person B:  Provides 0% of cash.  Responsible for managing rehab, listing, rental, or whatever.  Assigned 50% of any profit.  

*LLC used as the partnership instrument

*Cash purchase of property

Scenario 2:  Same as above but conventional financing will be used.  Cash contributions the same.  

Appreciate any insights, thanks!!