Any thoughts on how to structure an example residential real estate opportunity below:
Person A wants to buy a primary residence but does not have the capital for a down payment. As such, Person A has asked Person B to provide the capital for the down payment. However, Person A would be paying the monthly mortgage payments and get to include the annual tax benefits.
If Person B provides 20% of the purchase price as a down payment, Person A has suggested that B gets 30% of the purchase price when sold down the road hopefully at a high price. Therefore B gets a return on his portion of the investment plus and an additional 10%.
How would you structure this from a legal entity perspective? Would you form an LLC and buy the property? Any suggestions?
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