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Updated 10 months ago, 02/09/2024

User Stats

82
Posts
28
Votes
Matthew Bernal
Pro Member
  • Investor
  • Carmel, IN
28
Votes |
82
Posts

Trusts, LLCs, and AirBnBs

Matthew Bernal
Pro Member
  • Investor
  • Carmel, IN
Posted

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!

  • Matthew Bernal
  • [email protected]
  • 619-752-0988
  • Loading replies...