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Updated about 1 year ago,

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11
Posts
5
Votes
Sean Leonard
5
Votes |
11
Posts

Need to finance renovations on rental owned by my LLC

Sean Leonard
Posted

So, I have a bad property manager who allowed my tenant to let the property fall into disrepair and, because I didn't choose the contractor he recommended, he has let my property sit untenanted x 8 months, not following through on getting me 2 comparable quotes...

So, I now have to have $36,000 worth of repairs performed on the inside of the property and probably an additional $20,000 on the exterior (the latter can wait until I have a tenant...)

The business accounts associated with the LLC's (jointly owned by my wife and I) that own my rentals don't have sufficient funds to pay for the repairs. We are going to fund the repairs from our savings, but I'm wondering if I should "loan" the money to the LLC - drawing up a loan agreement with interest, etc. between my wife and I as individuals and ourselves as LLC owners, or just transfer the money from our savings to the business account and pay it that way (I don't want to pay for it out of our personal finances directly, as that may nullify the liability isolation created by the LLC.)

Thoughts?

--Sean

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