Another way to get around this it to add a name onto title after the transaction with a non-arms-length transaction such as a gift.

We have sent them little Christmas gifts each year, gift cards for a date.

@Zoisa Marsden I believe he 3% down has to come from you or possibly from a family member as a gift....with a signed affidavit that the gift is not a loan ( no investor would sign that form obvious reasons).

He might come bearing gifts if he/she comes back for another chance. 

They said they would sell to us at a discount as "gift" to help us build up our investment property portfolio.

I know I can be gifted the funds, but if I'm given the funds and expected to pay it back does that change things in their eyes?

If the LLC will also have members that do not currently own the property, then there may also be gift tax implications.

@Juan Carlos Gutierrez You can also be gifted the additional funds to cover your down payment and closing costs.

If you were the licensed agent asking if you could offer $100 gift cards to people for bringing you a lead, I would caution you.

If We were to gift this rental property to our son this year can he sell it next year under Sec 1031?