Structuring Entities (LLCs) with an Operating Company

[Matthew B.]

I've heard on the BP Podcast and several other investors mention they have holding LLCs for their rentals, a holding LLC for their flips, and an operating LLC that manages everything.

I'm just curious how this works, especially in regards to the flow of money. If anyone has this type of setup and would like to share how it runs, I would appreciate the info.

For example, does the operating LLC own the other holding LLCs or are they owned by you?

What does the flow of money look like when you purchase a new flip? I'm assuming the money would come from the operating company but the property would be titled to the holding LLC. Then renovation money would come from the operating LLC. But doesn't this defeat the purpose of the separation of assets if you're going to co-mingle everything?