Updated over 5 years ago on . Most recent reply
Equity Loan Money Transfer
Hello,
I am looking to have someone in my family take out an equity loan on a Commercial Property they own to start my real estate investment career. I feel this is a much better move then using a hard money lender due to the extreme interest rates they charge,the complete balance being owed after 12 months, and the large down payment required. Plus, it’s hard to qualify without any experience or assets.
First, I already have an LLC in place. How do I transfer the money to that LLC once the Loan is issued to my family member? Can it just be issued directly to my LLC?
Second, are their any tax liabilities that my family member should be aware of by taking out an equity loan on their Commercial Property?
Lastly, I plan on creating a holding company(original LLC) and then forming separate LLC companies for each house purchase, in which I'll be transferring the funds into and out of once the property is sold. Are their any faults in that process or certain tax liabilities I should be worried about?
Appreciate any responses or advise.