Question Details

J, Home Buyer in Danville, CA

me and my business partner(both married) would like to invest in a duplex without involving spouses or using

Asked by J, Danville, CA Sat Mar 7, 2009

and LLC

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In MN anyway it only takes one spouse to buy but two to sell, in this case that would be 4. CA has a lttle different take on property between spouses and a REALTOR would only be able to state the regulations but not advise on which would be best for you. You may as well start right at out with a lawyer who specializes in real estate and then start your property search.
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0 votes Thank Flag Link Sun Mar 8, 2009

OK, you want to buy a property without putting it in your name, or using an LLC.

Here's the first point: You need a (taxable) entity to purchase a property. So, although you don't need to be an LLC, you do need some sort of business or personal entity.

If you don't want to do that, they I would consider - VERY CAREFULLY - a lease with an option to buy. It would work like this:
A) You agree with the landlord that in return for paying above market rent, you will receive a certain amount of equity in the property, if, and only if, you purchase the property at agreed upon prices. Do this requires a willing seller (difficult), and a considerable amount of thought about how what the building should cost in the future based on your equity stake. This gets harder the longer you try to keep the arrangement.
B) Since initially in the transaction, you are lessees, the ownership problems of spouses and LLC's are not there.
C) The downside in most of these deals is that if you walk away, then you don't typically get your "rent premium" back.

These deals are hard to put together, but they can be good for both sides in certain situations.

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0 votes Thank Flag Link Sun Mar 8, 2009

There is plenty of information available, however, it would be beneficial to clarify your question so the Pros can assist you.

Try reposting it..........

Good luck
0 votes Thank Flag Link Sun Mar 8, 2009
Hi J- So what is your question? Is it how do we take title? If so, you should speak w/a real estate attorney who might suggest 'tenants in common' where if something happens to one of buyers/owners, their portion of ownership goes to their heirs, but, again, u must speak w/a real estate atty.

I'm not sure if that is what you were asking, regardles, definitely speak w/a real estate atty.

Yona Bello
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0 votes Thank Flag Link Sat Mar 7, 2009
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