Posted by John on August 26, 2005 at 21:16:38:
This is an opinion, as I am not a lawyer or CPA.
You could creat a note at 20% simple interest on a loan to LLC. The 10K interest would be a write off by you and he would report as income. Just my opinion not to be confused with advise.
Silent investor…HOW-TO??? - Posted by Lanky2FL
Posted by Lanky2FL on August 26, 2005 at 20:13:42:
I have a silent investor that is looking to invest 50K into a a condo conversion. I want to use his 50K for the down payment on the loan and I will carry the rest. Legally, how would I get his money as a silent investor to put down on this deal especially if he only wants a 20% ROI on his money? After a year I will flip the property and pay him back 50K and also 10K for the money he invested and I will roll the rest into another deal. I currently have an LLC. Should I use him as an investor into the LLC? How is this done? Would he be responsible in paying taxes on the 10K ROI or will I have to since the deed to the property is in my name? Any suggestions? Thanks.