Trusts, LLCs, and AirBnBs

[Matthew Bernal]

Hey BP Fam! I hope that everyone's 2024 is off to an outstanding start!

I was fortunate enough to get a property under contract at a great price from mentors of mine. They had suggested using a trust to hold the asset and I like the idea! 

As I was prepping my chart of accounts, though, I realized that I was unsure as to how to best structure the cashflows. Here's my basic structure:

Irrevocable Living Trust (The Protector) --> Holding Company (The Unifier) --> Aquisition's Company (They "Buyer") --> Operating Company (The Asset)

My question is how should I structure this asset on a banking level? Should the operating company pay the Trust? The property I am closing on includes $110,000 in non-real assets, where should those liabilities be held? My goal is to give the most accurate financial representation of the asset's performance? 

Please assist!

[Don Konipol]

Quote from @Matthew Bernal:

Hey BP Fam! I hope that everyone's 2024 is off to an outstanding start!

I was fortunate enough to get a property under contract at a great price from mentors of mine. They had suggested using a trust to hold the asset and I like the idea! 

As I was prepping my chart of accounts, though, I realized that I was unsure as to how to best structure the cashflows. Here's my basic structure:

Irrevocable Living Trust (The Protector) --> Holding Company (The Unifier) --> Aquisition's Company (They "Buyer") --> Operating Company (The Asset)

My question is how should I structure this asset on a banking level? Should the operating company pay the Trust? The property I am closing on includes $110,000 in non-real assets, where should those liabilities be held? My goal is to give the most accurate financial representation of the asset's performance? 

Please assist!

Wow! I own 18 properties (16 commercial), hold 3 notes and am invested in 11 note syndications and 2 property syndications and my legal structure is nowhere near this complicated.  Stop taking the advice of people selling you something and hire an attorney specializing in either real estate or asset protection who will provide KNOWLEDGSBLE UNBIASED advice.