Real Estate properties bundle

[Yovanni De La Rosa]

Hi guys! 

I have several questions. I want to grow my real estate investment in Texas.

1. I want to bundle real estate properties of mine, relatives and friends combine as one. Can it be done by REPT or an LLC? and would I need the Bundle of rights need to be signed by all members.

2. I Want to access 80% of our HELOC or Cash out Refinance. I'm asking this question because we haven't generated any income debt-to-ratio yet into our real estate business but we have assets. How will the bank give us access to our HELOC  or Cash out.  

 Hope to hear back soon from you guys and any help would be appreciated and hopefully we can do deals!  

Sincerely,   

                 YD 

[Kerry Baird]

Sorry, I am not sure what REPT is. I do have a Texas Series LLC, which may be of interest to you. We have an Operating Agreement which delineates the percentage share of each cell in the series. I am a member of some, my mom is a member in others. We brought on my daughter and son to be members, each of them on an individual property, but the majority member will be me or my mom and the child has a minority share. Again, the shares are set up in the Operating Agreement.

We bought the properties and then later learned more about asset protection.  Later set up trusts, and contributed the properties to the entity, all for asset protection...speak to a lawyer about setting up the structure.

If you have a HELOC, it will have to be on your primary residence, as I have yet to see a Texas LLC qualify for a HELOC. Talk with your CPA about how you would contribute funds from that HELOC. Interest tracing is important for taxes.

It is going to be complicated at tax time...just telling you in advance.  And more expensive than you may think, as each cell has its own EIN number, each entity has to file and report K-1s.  Insurance is commercial, so more expensive. 

You need some real solid professional advice to get this done right.