BRRRR & Business Structure

[Brian Rogers]

Hello everyone, hoping to start BRRRR investing this spring but I would like to talk more about business structure than anything. I understand that each property will most likely be formed as an LLC, but I know there are some educators out there that suggest having a holding company (2nd LLC) that holds ownership and the transferred funds from the rent of the individual property LLC's into the holding companies bank account thus giving the owner the ability to earn a salary as an employee. I really like this business model but how are people using this method and BRRRRing at the same time? Is the business owner buying these properties with their own credit with the help of hard money completing all the BRRRR steps than refinancing/cash out equity with a standard mortgage then transferring the asset to the holding company as a newly formed LLC? Does this make sense? How would someone bypass commercial lending and buying assets within the holding company business? Or is BRRRR investing only for non newbies and well suited for those who would meet commercial lending requirements? And last question there would be no 2nd down payment to complete a cash out refinance BRRRRing correct as there already was a down payment through the hard money loan. Thanks for all of the tips and suggestions.