Accepting payment for personal realestate under business account?

[Saiph]

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.

[grosa001]

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.

[richards]

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

[unuvav98]

good

[unuvav98]

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

[S_Lindq]

Yep i agree grosa001

[zdkformations]

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.

[essencepk]

If you own your own business and need to use funds from your business account to cover personal expenses, it's tempting to simply issue checks from the business account to cover the personal expenses, but it's not a good idea to do so.

[Srijana Pandey]

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 mishappening 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.

I totally agree with your words. There is the proverb " Prevention is better than cure". So I also think that "#1Saiph" If you think anything related investment of buying first you have to buy your personal account. If it is good then it is better to do it from the company too. It gives the major benefits also to you.

[maryjfriedman]

In UAE you have a business and want to open an account for Islamic loan for business in UAE, Mashreq Bank is providing the best and business account for any business.