All Forum Posts by: Arron Paulino

 Sounds simple enough. Thanks for the answer!

I plan to utilize seed capital and leave it alone to fund the business. I only plan to essentially pay myself once I see extra income not needed to be in the LLC account. What do you mean by having a good attorney have my LLC thrown out?

This seems like a very newbie question. How do you begin funding an LLC? Do I go into my local bank and let them know that I am looking to open a business checking and/or savings account under my LLC? Once in, do I need to bring a cashier's check or the like to deposit into the account as seed capital? What documentation do I need to bring to open? I am currently under contract on a house through my LLC and need to pay an assignment fee in a couple of weeks ($10k) at closing. I have it ready to go from my personal bank account to transfer.

I'm used to purchasing property under my name, but now this will be my first in an LLC, and want to make sure I am starting correctly.

 Thank you!

He can share his experience, boots on the ground, and acts as a lender to fund the project. I essentially put skin in the game and am informed the whole way up until the property resells.

That said, I think I'll be able to learn how the project is structured from start to finish and learn how I can do this all better in my journey.

 That's what I want to make sure of at the beginning since I want to ensure I have a great foundation so I don't have to worry about things later on. What do you mean by CA gross receipts?

 Hi Sean,

I think I've heard of this reasoning for the LLC with an S-Corp election. Do you mind elaborating on how this relates to self-employment taxes?

How are LLCs generally used for passive income? I've spoken with lenders and they say I am qualified for a good amount of funding by using an LLC to purchase properties.

That's exactly what I am trying to figure out. My plan with the LLC is to fix and flip properties to generate capital to scale up my real estate investing and keep properties that make sense to buy and hold when they come up.

Thank you! I agree. I think I'll get more clarity by talking to an attorney and/or CPA about LLC creation. I have found a BP investor who will be providing the deal, rehab team, and agent to sell the property and I would have to obtain the property in the LLC before we fix and flip the property. I am just starting with this LLC as I have done my deals myself without an LLC. I think I need to see this all played out in a scenario to completely understand how this all works.

 Hi Jake,

Thanks for the reply. I have made an LLC in California (my home state) and plan to do business in another state.

1. I have already established an EIN once the LLC had been approved by the state via the state website. Are there any initial steps that still need to be completed? I am literally in the beginning phase.

2. Yes, I will be doing my business and personal activity separately. The idea was to add seed capital from my savings into the business so it could have something to work with and then down the line, pay myself the extra funds not needed to be reinvested into the LLC. Is this the way to go? I was thinking of going to my local Wells Fargo or Chase to get this set up. Thoughts?

3. I think now that you brought up that card I may just push through with Chase Bank. Have you established a relationship with them? What were your steps in the beginning of LLC creation? I am responsible for my credit as it plays a vital role in my real estate investing journey.

I have just established my LLC and want to ensure I am on the right track. I plan to partner with another BP member and do mostly flips and add to my rental portfolio if the numbers work best. I plan to use the money I have saved up as seed funds to get this newly created LLC up and running. I will be reinvesting the funds and keeping a little as my LLC grows.

Do I need to go to my local bank to create a business account and put funds in from my savings to get this started? I live near a Wells Fargo and this is my local bank or should I make one online with another bank? My LLC is just in the starting phase and want to know the best practices to get it on the right foundation to partner with other investors and set myself up for success. I've noticed that lenders I've spoken with here suggest I create an LLC so they can lend to me.

I've already invested on my own and have properties under my name providing me with monthly cash flow as well as finishing my first flip I plan to sell at the beginning of the year.

Planning to start this upcoming year with traction with a new real estate investing venture and move upward in my journey. Appreciate the suggestions. 

 Thank you for the link. Plan to join soon!

 Thanks for sharing!