Limited Partnership - Posted by LP investor

Posted by Rafiq on March 13, 2002 at 10:53:45:

Try this one first: Ehomeloanconnection.com

I think you will find everything you need there.

Have fun.

Limited Partnership - Posted by LP investor

Posted by LP investor on March 12, 2002 at 12:36:28:

I have formed an LP to purchase, rehab and lease foreclosed properties in which I am the managing GP. My partner’s role is to lend the partnership short-term money for aquisition/rehab and personally sign for cash-out and/or purchase mortgages because he has the non-real estate income to support multiple loans. The plan is for the partnership to return this money plus interest with a cash-out or purchase mortgage immediatly after the property has been rehabed and and before profit distribution. We plan to buy 2-10 houses per month at the foreclosure auction with the long-term goal of having a portfolio of positive cash flow properties that are paying for themselves.

I am just beginning to explore our mortgage options for one recently rehabbed and rented house and have learned that mortgage lenders (excluding banks) will not lend to an LP - only to an individual. This obviously creates legal, liability and multiple partner ownership interest problems. One mortgage broker suggested that when we buy the house in cash at auction, instead of putting the property in the name of the LP, put it in the name of my lending partner and then after the permenant has closed, deed the property to the LP.

I am concerned with this for two reasons:

  1. the property is in the name of my partner and my interest is not protected for that time period
  2. the mortgage could possibly call the loan if they learned that the ownership has changed

This issue has caused a major road hurdle for the successful execution and operation of our real estate investment partnership and must be solved for us to continue. The supply of aquistion cash is not infinite and must be continually replenished with a post-rehab permenant mortgage for us to buy property every month. What do we do???

Re: Limited Partnership - Posted by Rafiq

Posted by Rafiq on March 13, 2002 at 07:55:40:

You guys are on the right track to making some very big money. It seems to me that your only issue is trust. If you and your partner don’t trust each other, why did you form the partnership?

Anyway, there are many lenders out there that will lend to a company. The only thing needed from your partner is his signature as guarantor and some other basic info.

As for the loan being called, make sure you read all your documentation on each loan. If its not in writing and you are not in default of the loan they can’t make you do anything.

Don’t let minor things stop you from doing big things.

Re: Limited Partnership - Posted by LP investor

Posted by LP investor on March 13, 2002 at 08:40:17:

Thanks. While I extend trust until given reason otherwise, it is a new relationship with someone that I do not have any past experience with and as such feel it prudent to not leave myself exposed. Question - do the loans to a company require credit approval and financial responsibility for the loan from ALL partners or can they do it with him on the loan only?

Re: Limited Partnership - Posted by Rafiq

Posted by Rafiq on March 13, 2002 at 09:38:57:

As long as you’re thinking like that you will be just fine.

No. All that is required is info. on the person guaranteeing the loan. All the lenders are looking for is security. The stronger the guarantee the easier the loan process.

Re: Limited Partnership - Posted by LP investor

Posted by LP investor on March 13, 2002 at 09:42:48:

Can you point in the direction of some of these lenders so that I can get in touch with them?