All Forum Posts by: Ku Thao

Quote from @Ku Thao:

Quote from @Samuel Young:

I'll definitely be creating a separate account but I am wondering if I should open a specific "Business Checking account" or just another personal checking account?

This is the same question I have. I will not be opening up an LLC at the moment.

When I first started investing I didn't open a business account, however, I kept meticulous records of all business expenses and had documentation to back up everything. My accountant loves me! Ha! Once my portfolio grew and the properties were put in different entities, I opened a business account. My best advice, if you aren't good at keeping your books clean, open a different account just for your real estate investments.

You can use a second account general checking account. If you end up creating an LLC, you'll need an account linked to your EIN.

I'll definitely be creating a separate account but I am wondering if I should open a specific "Business Checking account" or just another personal checking account?

Quote from @Ku Thao:

I would love to attend but the weekdays do not work so well with daycare.  I will try to figure something out...keep me on the maybe list for now.

 No worries. The plan is to make this a recurring event. So if not this one, we will see you at the next. 

I'd suggest looking at your options for securing your financing against the properties you decide to invest in. While the most secure position to take is a 1st TD and note attached to the property, there are others creative strategies to deploy capital into a project. Equity into the borrowing entity (mostly for SPEs) which specifies repayment terms and details the "equity waterfall" is a good example. You'll just want to make sure the language is as tight as possible by having your legal team review so that, in a worst case situation, you have recourse. 

As @Charles Carillo mentioned, you should speak with a real estate attorney who should be able to help or direct you to the correct person depending on how you and your partners decide to structure your fund.

@Ku Thao

If everyone investing with you is truly going to be active investors; you can form a joint venture partnership. Any real estate attorney should be able to structure that. If there are going to be passive investors; you are now forming a security and you need to enlist the services of a SEC attorney.

What terms are you offering? Direct debt secured by property? or a fund?