Purchasing property with a partner

My firm and a sister firm currently rent an office together.  We are both wanting to buy a something to rent back to the company and hopefully have enough to get a couple extra tenants and help it pay for itself.  Anybody have any experience doing this?  We are going to have to set up a LLC to buy the property.  I know stuff like this can go sideways if all the partners dont get along, but i think we can pull it off.  This would be my first venture into owning commercial property.  

Never done it, but I would assume you stipulate in the LLC what happens if one of the partners wants out, or what happens with profits / losses?

I just know in my prior government employee life whenever we had to buy property ( say land for a road) from a parcel with multiple owners / tenants it was a huge PIA even when the owners wanted to sell but we always had to go the condemnation route because no one would ever agree to 'everything'

It doesn’t matter how close, how much you all trust each other or what good friends everyone is. It will be a buisness deal so treat it as any other. Have a lawyer draw everything up so all parties are protected if as you say, things go “sideways”. It’s always exciting to grow your buisness. Good luck!

goodal said:

My firm and a sister firm currently rent an office together.  We are both wanting to buy a something to rent back to the company and hopefully have enough to get a couple extra tenants and help it pay for itself.  Anybody have any experience doing this?  We are going to have to set up a LLC to buy the property.  I know stuff like this can go sideways if all the partners dont get along, but i think we can pull it off.  This would be my first venture into owning commercial property.  

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In addition to RG's,

are you coming in as an operator/owner, or investor/owner?

When partners don't get along, who would be calling the shots?

I am of the belief that in real estate under the common law in the U.S., so long as your "Name" is in the deed and you owned certain percent on equity, partners and/or co-owners cannot just get rid of you (for example: sell the property and dilute your equity ownership) without your approval. 

Good luck @goodal !

Respectfully yours,

@Dean Agnostic , Ph.d. in D.u.m.b. and Patsy Macroeconomics

At first glance I thought this thread was about buying a house before getting married.   Almost did that.  Glad I didn’t.