Mortgaged Properties in LLCs

[Kyle K.]

Say you decided to place one of your mortgaged investment properties into an LLC for asset protection. You're doing what you can to treat your LLC like a business (it has its own checking account, filed separately from other properties, etc.) However, you want to pay down the mortgage balance as fast as possible with some of your own funds outside of your property's rental income. How do you do that while maintaining your LLC as a separate business entity? Transfer your funds into the LLCs checking account and then pay down the mortgage from the LLC checking account? Is this advisable?

[Bryan Hancock]

All of those opinions really are misguided because everything varies based on your personal circumstances. That is why you need advisers to help you with this stuff.

In the end most things are a judgment call. You can wrap yourself in many, many layers of protection, but nothing beats being honest and doing what you say you will do. The extra protection generally carries a cost so the defense you play isn't free. You need to select the proper amount of defense based on your own personal circumstances.