Intro, LLC banking question and financing question

[Kent Estep]

Quick intro, current SFR investor who just jumped into apartments---a 16 unit and a 12 unit. I have a great management team so I'm not as nervous as you would think. Anyway, a quick banking question. I have my business banking with my existing LLC that holds my homes. The apartment buildings will be in a separate entity. Am I able to use the existing LLC's bank accounts for transactions OR do I need to open new accounts for the new entity ? I worry that if I funnel money into the existing LLC that should a legal matter arise they can point to the commingling of monies and tie them together. My financing question; it's been two weeks since we started the process. My contact has been great in asking for paperwork, but the process seems nothing like SFR mortgages. I see that with commercial property the bank runs numbers on the deal first and then they dig through your personal finances ? I'm used to them bombarding me with requests for papers, but so far it's been quiet...too quiet...I ran the numbers before I made the deals and I know they are good, I just expected a lot more back and forth. Thanks for your replies!

[Michael Jones]

Always, always, always set up different banking accounts. If you co-mingle the funds, courts can collapse the entities and state that there is no limited liability with those companies. The same goes for any personal funds. Make sure you treats those as distributions to shareholders/members and don't run personal expenses through those bank accounts. Easiest way to lose your wealth by violating that true separation.

Banks are nearly as nervous as they were before, so some aren't kicking the tires as hard as others. Developing a relationship with a banker will go a long way.