All Forum Posts by: Jonathan B.

Thanks Sylvia,

if i get what your saying right - you have 3 separate  bank accounts (separate logins), or you have 1 bank account with 3 different checking accounts in it?

thanks

What was their response regarding having all the inflow going to the same bank account?

one argument i heard against that was that if you basically have all the transaction done via 1 bank account, you essentially cant argue these are separate businesses in case of a suit  

Hi Guys,

Having several properties divided into several LLCs.. these LLCs are owned by a Parent LLC, which is owned by a partnership.

LLLP -> Holding LLC-> Rental LLC1/ LLC2 / LLC3

All income/expenses are flowing out/in from a single bank account.
im using QB to account and allocate by classes, so no mess there.

i heard there is a need to have a bank account separate for each LLC, it seems excessive and cumbersome to me.

is there a better way to go about this and maintain a balance between protection and ease of operating?

i was considering setting up a property management LLC, owned by the holding LLC to manage all the rental LLCs, collect rents etc and having them flow back to the main account.

what are you thoughts? do you have suggestions on better ways to set it up?

 I understand the logic behind, however... what if someone has 20 rentals and 20 accounts
 seems excessive 

Hi Guys,

Currently own multiple properties (Sfr),

they are spread out into various LLCs, having couple of properties in each LLC.

these LLCs are all owned by and a subsidiary of a 1 holding LLC.

Rent is currently flowing into 1 bank account, all expenses and income are being segregated and and accounted for with QB and works well.

Ive been reading that each LLC should have its own Bank account.. i feel this would be a pain to do..

What do you suggest doing? 

how are you structuring your holding?

appreciate your insight.

stay safe.

@Brady Bitter Exactly my view.. great!

@Lisa Eckman any insight/input from your experience? 
@Brady Bitter

The main thing i was debating with myself was whether or not i should treat single family portfolio  similar to a commercial or multi-family value add deals - the main difference is how its valued - on commercial/multifamily the value is a factor of its income, while single family is solely based on sold comps, therefore have less control over the value and are left to the market's valuation which tends to be more volatile comparing to rent rates.

I think the IO route could be safe if you are Conservative with the LTV and have enough cushion to sustain any downturn that provide enough time to liquidate,

Thanks @Brady Bitter, I will consider this - mind sharing what rates were you offered?

Hi Guys,
Have several SFRs, mostly cash bought, all of them are valued at +40% of my investment,

I want to pull cash out of a few of them and keep buying more distressed properties-

Given that all of these will fall under a commercial loan criteria (llc) , I was offered the following terms:

6% @ 20 year term with 5 yr ARM and than fixed for the following 5 years, which is an average minus offer , i guess(?)

this loan will substantially hurt my cash flow, although still positive.

Me being mostly cash-flow focused right now - will it make sense to try and get and a couple of years "Interest only" loan at a conservative 50-60% LTV?

as far as the risk involved with IO loans - apart of potential fluctuating values (which i dont foresee it it dropping even close to 40% anyhow) what other risks i am facing here?

i am having a hard time understanding how sending the principal portion to die off at the bank better then me keeping it and re-investing ?
   

appreciate your input,

I got a hold of a "Personal estate representative" - They are due to be foreclosed on soon.

Owner was deceased and his daughter is named as personal rep. 

Just had one phone call and have not got details yet about their authority,

they are willing to sell - it seems.

records show one of them is the estate personal Representative.

What steps should i take and who should i talk to moving forward? is it a normal purchase contract?

Thanks.