I am buying a house for $150K for investment purposes with two other individuals, “Man A” and “Man B”. The current value is $400K. We will split the profits from the sale 1/3 each.
“Man A” is single, owns a home, has excellent credit, wants to sell within 6 months and is contributing 1/2 of the purchase price.
Man B is single, does not own a home and has a huge outstanding debt and horrible credit. (He is our connection to the house). He has no preference to sell right away or keep the property for several years. He is contributing nothing toward the purchase price and agrees that his name should not be on the title.
I am married and own a home, have excellent credit and am interested in keeping the property as an investment for several years. I will contribute the other 1/2 of the purchase price in cash.
Should I take title with Man A as individual tenants in common? Or is it better form a partnership? Any ideas on how to pay off Man A early so I can keep the house?
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Comments
Create a small LLC. Partnership is equal risk to all. In your business plan you have setup the LLC to be used for the purchase of the property. The owners of the LLC will be the members. YOu will have 3 members owning the LLC. The LLC will buy, fix, sell for profit. All proceeds that the LLC earns will be divided equally with the members. Any member can resign off the LLC with a letter resignation. get a sample of your State Limited Liability Corporation bylaws, and all forms can be found at your local state TAX or business registration office.
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get in touch with a solicitor/attorney, they will give u sound advice on how to approach this query.
