Results 1 to 7 of 7
  1. Collapse Details
    Accepting payment for personal realestate under business account?
    I started my LLC not knowing much in the way of getting a mortgage for my first investment property. It's been a few months and I talked with a mortgage lender and they explained how they cannot assign a mortgage to a business and that my rates would be better if I did a personal mortgage. I would have to go through a commercial lender to borrow under my LLCs name. So my question is, if I buy an investment property under my name can I accept rental payments under my LLC and then have the LLC pay me the amount of my mortgage payment. My LLCs account would then hold the security deposits and net income so everything stays separate from personal income and expenses. I would like to get cash flow in the LLC so that it will be easier to borrow under in the future.


    Share on facebook


    Reply With Quote
     

  2. Collapse Details
    I would avoid holding the property in your name personally, but not for tax reasons. As an LLC, you're going to be operating as a pass-through entity for tax purposes, so the reporting of revenue/income won't change much. The IRS isn't going to be checking property records to see if you really own the property you're reporting income on. But anyways - the big reason to hold the investment in the LLC is for liability reasons. If one of your tenants, a vendor, or pissed off neighbor sues you one day down the road and has the chance of winning the lawsuit, you do not want your personal assets to be up for grabs in the judgement. If held under the LLC, they can only go after the assets held by that LLC.

    That said, when you invest in other properties you should create other LLC's for EACH property. This limits your liability exposure for each property. I'd say this is especially true for apartments, where you're going to have more liability issues than with single family rentals. That mortgage company just wants to write you a mortgage and sell it, they don't care. Go with a bank that does a good deal of commercial lending. You can ask the bankers in your area who does this -they all know which banks like what kind of loans.

    Let me know if I can help anymore. I'm no expert by any means but I know a few things.


    Share on facebook


    Reply With Quote
     

  3. Collapse Details
    ^^^ this is a pretty good answer.
    That newby should get a raise.


    Share on facebook


    Reply With Quote
     

  4. Collapse Details
    good


    Share on facebook


    Reply With Quote
     

  5. Collapse Details
    Quote Originally Posted by grosa001 View Post
    I would avoid holding the property in your name personally, but not for tax reasons. As an LLC, you're going to be operating as a pass-through entity for tax purposes, so the reporting of revenue/income won't change much. The IRS isn't going to be checking property records to see if you really own the property you're reporting income on. But anyways - the big reason to hold the investment in the LLC is for liability reasons. If one of your tenants, a vendor, or pissed off neighbor sues you one day down the road and has the chance of winning the lawsuit, you do not want your personal assets to be up for grabs in the judgement. If held under the LLC, they can only go after the assets held by that LLC.

    That said, when you invest in other properties you should create other LLC's for EACH property. This limits your liability exposure for each property. I'd say this is especially true for apartments, where you're going to have more liability issues than with single family rentals. That mortgage company just wants to write you a mortgage and sell it, they don't care. Go with a bank that does a good deal of commercial lending. You can ask the bankers in your area who does this -they all know which banks like what kind of loans.

    Let me know if I can help anymore. I'm no expert by any means but I know a few things.
    good proramm


    Share on facebook


    Reply With Quote
     

  6. Collapse Details
    Yep i agree grosa001


    Share on facebook


    Reply With Quote
     

  7. Collapse Details
    #7
    Join Date
    May 2017
    Location
    London, E14 8RJ United Kingdom
    Posts
    49
    I think you should buy it on your personal account not on your LLC reason being there are many people surrounding you at your home place if there is any mis happening there are chance of complain file against you and then surely you are in a great menace if you do not possess your mortgage name on your personal account.


    Share on facebook


    Reply With Quote
     

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •