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.
Creative Real Estate Financing
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 almost 8 years ago on .

User Stats

131
Posts
62
Votes
Josh Calcanis
  • Rental Property Investor
  • Orlando, FL
62
Votes |
131
Posts

LLC as a holding account for funds?

Josh Calcanis
  • Rental Property Investor
  • Orlando, FL
Posted

BP,

I've begun exploring options for some creative financing. My plan is to have my first commercial deal done by the end of 2017. My question pertains to raising capital in the form of an LLC holding. As in have a bank account under an LLC, hold the funds from the capital raised, and purchase something in cash. With all things considered here (legality, taxes on 'income' and capital contributions, purchasing in cash) what are the downfalls of a setup like this?

Is this something where I'd have to have the deal ready to go or can I collect the capital and find myself a property? What about contractual agreements? What would make sense in terms of ROI to the capital partner?