Even though Prop Manager told me it’s a HORRIBLE idea, I’ve decided to partner up…
Our situation:
My partners and I are forming a Georgia LLC to invest in rental properties. We’re in the very early stages of this, in that I’ve written the Operating agreement and it only needs some specifics to be fine tuned and verified. We have an attorney friend in GA who’s supposed to be working on this for us as far as completing the registration process and acting as our registering agent. I know we could do it ourselves online, but he’s offered to take care of it for us at a good price. (Since the OA is done, $150 to complete the process).
The thing is, the attorney just recently relocated himself and I think he has other priorities, plus he’s not a business or real estate attorney per say so I’m seeking some more experienced, professional advice and/or assistance in making this happen.
So with all that said here’s our dilemma. One of my partners owns a SFH in Alabama. When he bought the property he got a 0 down ARM probably 4 years ago, that’s now up to 12.75%. So of course he wants to get out from under this high APR and is willing to sell/transfer the property to the LLC (once formed) for only what he owes ($65,000) the prop appraised at $90,000.
We’re currently shopping around for lenders and I’m aware, based on what I’ve read that the zero down loans are pretty much a thing of the past, at least for investment properties. We would like to get him out from under it as soon as possible and we’re even entertaining the idea of my other partner buying it personally until the LLC is up, then transferring it. The owner is also going to check into refinancing it himself.
Is there a way to do this deal without putting any money down?
Does this even sound like it might be a good first deal for our company?
I know I left out a lot of details and I can provide them as needed. I just wanted to get the basics out there first.
Thanks in advance for your help.
Ryan