Often, after parents pass away leaving a house to their children, the siblings disagree on what to do with it. Some want to sell and split the money. Some want to live there. If the sibling that wants to keep the property can get a mortgage, they can buy out the others. But what if they can’t?
One solution is to create an LLC with the siblings as members, transfer the real estate, and write a lease from the LLC to the resident. The LLC can then apply for a mortgage and use the proceeds to buy out the siblings that want their share. This takes legal work to set up and coordination with a lender but offers a solution to meet everyone’s goals.