So, this is something I feel I should know, but am not 100% sure about:
So, once you have an LLC formed to hold your real estate and start accruing cash which will eventually go toward your next property, can you invest that money in the mean time in CD's in say a TD Ameritrade account. I already have a decent amount of stocks and bonds in a couple TD Ameritrade accounts and see where you can open accounts for your LLC there. But, I was not sure if once you declare the purpose of your LLC is to own real estate if the IRS or some other entity would frown on there also being an "investment account" in there.
My idea comes from the fact that you can find short-term CD's paying 4% interest at TD Ameritrade (far beyond what my credit union or bank pays currently). So if I had, say, $10,000 accrued in my LLC bank account, I wanted to make sure it would be ok to leave maybe $5,000 in just straight cash for any repairs or maintenance that pops up this month or next and then putting $5,000 in maybe a 6-9 months CD and make a little bit off of it without getting sideways with the IRS. I know LLCs can buy stocks and bonds but my concern was with the stated purpose of the LLC.
Best Regards,
Christopher Woodland