Need some advice. I had bought a rental condo in July 2024 and couldn’t get it rented out. I wanted to make it into an airbnb but did not have the funds to furnish it. Now I have a friend who is interested in doing a partnership. The mortgage is in my name. So how do we do this?
Market is not feasible for refinance yet. Should we open an LLC partnership and deed the property to it leaving the mortgage in my name?
When we refinance- then should we deed the property in both our names and then refi

likehelpful
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Buddy it sounds like you have NO idea what you're doing. Sell it, put the funds in VOO, and move on.

likefunny

There’s a lot of nuances here, and a lot of ways to structure the deal.

I suggest you find a real estate attorney in your state to help you with structuring the contract in a way that makes sense.

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It seems to me like there could be a business arrangement made ( in writing ) for you to be the condo holder and for the potential partner to contribute via furnishings, AirBNB operating expenses and utilities with proceeds being split according to the proportions of financial contributions.

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My two cents: put the property in a land trust, convey the deed to the land trust, conveying the deed to an LLC will likely trigger a due-on-sale clause in your mortgage (they’ll never find out, and I’ve done it, but it is a risk). Make your friend a beneficiary of the land trust (with you as trustee), convey the beneficial interests in the trust to a Delaware LLC that you manage. Then have the Delaware LLC hire a leasing/property management company you start in the state where the property is situated—that should be the leasing agency. There are a lot of nuances here, and you’ll need an attorney to structure the agreements correctly. I do this for myself and some private clients I take. But it is the best way to protect yourself, and is scalable. There are other issues like insurance, but this is the general idea.

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