Investment Structure
Hi all,
I have recently formed a partnership for the purpose of investing into real estate. Partnership is formed in NY, investing will be done in NJ, as advised by my lawyer. I have found my first property. I understand that I can not get a mortgage in the partnerships name because it obviously has no established credit. I know that the mortgage will have to be in the individuals in the partnership names. Can I have the partnership on the house deed and have the mortgage in my partners and mine name or does it all have to be in our personal names. If this is the case, what are the guidelines for transfering the purchased properties from our personal name to the partnership once everything is done. ie how long do we have to wait, how involved is the process, etc.
would you comment why you went w/ the partnership?
My bank would not allow the owner to be cjmazur and the mortgage to be my LLC or vis versa.[ Edited by cjmazur on Date 12/28/2007 ]
Thanks locupleto, I failed to mention I set up this LP along with an S-Corp which in your example would take place of the LLC. I think in this way, I am protected.
Back to the question of why I chose an LP. Well I chose it because it is flexible for my use. My company will be used for several purposes, not just RE investing. We have already taken on a private equity stake in a company, etc etc. I understand that all assets are at risk but I can accept that.
My attorney at the time deeded the property to the trustees, "co-trustees under the **** trust agreement dated ****". The deed specifically spelled out the rights, duties, and interests of the trustees and (unnamed) beneficiaries.
Which means it is too lengthly to type out here!
Chris
Maybe someone can send me a example of the Warranty Deed to Trustee to my email, is that possbile