Innovative Strategies
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated 10 months ago, 02/09/2024
Trusts, LLCs, and AirBnBs
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!