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Updated over 1 year ago,
Questions on Expenses, Loans, and Leveraging with Family Real Estate Structure
Hi There,
A couple members of my family is looking to start an entity to invest in real estate together. We were thinking about having the following structure and had a few questions that I was hoping this group could help us answer:
1. With a passive partnership LLC, are we able to run expenses through this entity as we would in other businesses? These expenses would be related to identifying and acquiring these properties.
2. Would we be able to use the LLC to obtain the mortgage to purchase these properties? Or would the mortgage be under each "manager" of the LLC, members of the Trust, or just under the trust themselves? In other words, if we went to the bank to obtain a loan, can we sign a loan under the LLC?
3. After we have a few properties under the LLC, is there any way to leverage those properties to purchase new properties?
Any feedback would be greatly appreciated! TIA!