Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago,

User Stats

22
Posts
5
Votes
Michael Conte
5
Votes |
22
Posts

What Private Money Lending Documents are NEEDED

Michael Conte
Posted

I have purchased my first BRRRR property with private money provided by my mom. I am not sure which documents are needed in order for her to only be taxed on the interest she receives and not the principal payback. I may just be overthinking this. My lawyer and her CPA (who admittedly has no experience with this) both claim that a promissory note and a filed mortgage/deed of trust are needed for her to be properly taxed only on the interest she receives. Speaking with other experienced investors I have been told that only a promissory note is needed. If anyone could give personal experiences/insight it would be greatly appreciated. Being tax season, I haven't had any luck reaching out to other CPAs with how this should be done.

Other helpful info: Located in New Jersey. Property held in LLC. Principal and interest will all be paid back in a lump sum after cash out refi.

BONUS QUESTION: what kind of cash out refi rates have you gotten on LLC held properties?

Loading replies...