As stated in the title, my fiancé and are navigating through the weeds in terms of understanding whether establishing a business LLC is at large beneficial to our investment projects or not? I am considering aspects such as taxes, hard money lending draws for GC's and additional associated withdrawal or concerns. Any and all inputs are welcome, thank you.
Rental Property Investor · Member since 2020 · 11 posts · 7 votes
4y
Absolutely. It’s not expensive, does not need to be complicated, and will give you protection and segregation. If you’re treating your investments like a business, run them like a business with their own accounts, books, and operations! Some will say that your finance costs are greater, which is true, but if its a bad deal with commercial financing, it probably won’t be a good deal with traditional financing. We bought a property with a commercial 30 yr loan at 4.0% (I think we paid 3 pts) so it’s comparable still. Build those relationships with local lenders and you may uncover similar options. My 2 cents