All Forum Posts by: Kyle Neff

Hello BP Community,

General question regarding using some of the cash flow from REI to fund monthly expenses. As an example, if I have 10 properties each bringing in $1000/month net for a total of $10k net monthly REI income, and I want to reinvest 80% of these earnings directly back into my investing but use the remaining 20% to fund daily & monthly living expenses, how is it technically done?

Meaning - can you transfer funds directly from a bank account that is tied to an LLC to your own personal account without penalty to the LLC?

I am using this strictly as an example because right now I have only two properties bringing in $1600 net monthly income, and every bit of that gets reinvested, but I want to plan for the future as we are talking about my wife quitting her job at some point, etc.

What is the best way to approach this?

Hello BP Community!

Seeking advice on this seemingly unusual situation. My wife and I purchased a house in Cobb County, Georgia in October of 2018 from a nice retired couple who lived here for 20+ years. They moved to NH after selling to us because they are originally from that area. We have kept in touch with them because from time to time we will still get packages for them here and mainly because they are just great people.

Last week I received a message from the gentleman asking if we would entertain selling the house back to them, because his wife doesn't like the area they moved to in the NE and they miss this neighborhood and house. I spoke with my wife about it and she said we should hear him out, because (funny enough) we had actually been discussing possibly downsizing in the future because we might be going down to my income only.

A few days later he texted me again with an offer - they would buy the house back from us for what we paid ($355k), provide $50k to sweeten the deal, and pay $5k toward our moving expenses. Net net, we paid $355k for the house and he is willing to buy it back for what we paid for it and put $55k in our pockets. 

We like the area and the house but we are not stuck on staying in either. 

What would you do?

@Patricia Steiner

Thanks so much Patricia! I am always a big fan of the pros/cons list because of how my mind works. 

Curious for you and/or your investor clients - do you typically start by putting the loan under your personal info and then transferring to the LLC, or do you put everything under the LLC from the start?

@Scott Morongell

No, No - was just saying this is great feedback and must be true because of how many times it's been repeated - I greatly appreciate it!

@Alexander Felice

Thanks! Perfect summary. I am going to go back to EP 301...I bet there's some gold in there!

As a follow up - do you typically start by putting the loan under your personal info and then transferring to the LLC, or do you put everything under the LLC from the start?

@Scott Morongell

Thanks, Scott! Makes a lot of sense and have heard this feedback echoed many times already. 

@Todd Dexheimer

Appreciate the feedback, Todd! I have heard this many times on the podcast - treat it like a business and not just a hobby. 

Same question I have asked a few other times - when you are investing, do you finance under your personal and then move to the LLC later, or do you start from the very beginning putting everything under the LLC? Thanks again!

@Ron Hall

Thanks for the input, Ron! Are you invested in both residential and commercial? Do you typically start by putting the loan under your personal info and then transferring to the LLC, or do you put everything under the LLC from the start?

@Brie Schmidt

Thanks for the reply, Brie! Will use a loan and probably do 25% down. 

*I also posted this in the Commercial Real Estate section as well.

Hello BP Community!

I am considering investing in both residential multifamily properties as well as some 5-15 unit complexes. Do I need an LLC when moving forward with a commercial property in that unit range, or is it just a "nice to have"?

Disclaimer: this will be my 2nd investment property, the first is a SFR. Look forward to the feedback!