Posted by John J. on April 11, 1999 at 17:08:04:
Kim,
I’ve done this on about 10 properties and have 4 different partners. We form a partnership or LLC. I buy the property in my partner’s name (I or assign). He comes up with the downpayment and puts the mortgage in his name (I am maxed out on my 4 FNMA loans). After closing he quit claims the property to the partnership or LLC. I do all the work and they are solely investors. We split the profits about 50/50 depending on what % of the purchase price they have to come up with. When we sell they first receive their original investment back and the rest is split according to the %/% split. We file partnership returns and have formal agreements which also have a formula for in case there happens to be a loss and they spell out each partners responsibilities.
E-mail me if I can help further.
John J.