Building investment prop, what account should I make draws from?

[Patrick Padovano]

I’m building my first rental property on a piece of raw land I recently bought under my name. I plan to eventually transfer it into an llc I created once it is rented, and refinanced. Would it still make sense to open a business account through my llc to make the draws for the build, or does it really matter. I may also need to take out a small loan/line of credit to complete the house, depending on how far my money stretches. Any advice or information is much appreciated! Thanks 

[Patrick Padovano]

Quote from @Account Closed:

Quote from @Patrick Padovano:

I’m building my first rental property on a piece of raw land I recently bought under my name. I plan to eventually transfer it into an llc I created once it is rented, and refinanced. Would it still make sense to open a business account through my llc to make the draws for the build, or does it really matter. I may also need to take out a small loan/line of credit to complete the house, depending on how far my money stretches. Any advice or information is much appreciated! Thanks 

Hey Patrick, 
Having a business bank account allows for clear separation of business and personal expenses. I would strongly recommend creating one to ensure everything is neatly organized and you don't get flagged by accidently writing off personal expenses. 

As for the line of credit, that being in your name is OK. In the beginning its common place to take debt under their name to start off. 

Thanks for the reply! Ya I will be going to open a business account under my llc tomorrow. Do you know what the typical items banks consider in giving someone a loan or line of credit for their business are? Is it still the usual: income, debt, credit etc?