10 Years In - Finally Forming LLC - How Did You Structure Yours?

[Andy Webb]

How did you structure your LLC landscape for Mangement Company, Holding Company, Properties, etc...?

WHY: We are hitting our first full decade as rental owners (SF) here in Texas. We have followed the BRRRR method throughout, and always refi'd into the 30-year FNMA/FHLMC backed products; always in separate names to allow my wife and me to maximize that cheap money (you can each do 10 loans). For those that might holler about liability protection: we have kept them leveraged with cash-outs, have a substantial umbrella policy in place, and very simply we just make sure we keep the properties maintained and are good operators with happy residents.

We are now transitioning into a more commercial space and plan to roll out that LLC structure. Goals include further SFR acquitisions, small MF and more cash-outs using commercial products (since I am leaving my W2 in the next few weeks...).

I have my thoughts on structure, but was curious what others have done. I appreciate any insight you may care to share!

Andy