LLC - Posted by Chrisb

Real Estate Investing
1

Posted by chrisb on April 26, 2006 at 13:02:22:

Thanks Clint:

I guess it wasn’t that sinple as I assumed, but again I’ll take your advice and spend some capital on legal, financial & Tax pros.

Thanks again,
ChrisB

2

LLC - Posted by Chrisb

Posted by Chrisb on April 25, 2006 at 14:09:43:

Hello:

4 of my close friends and I are planning to buy and hold/rent some real estate properties in Southern CA. We plan to create an LLC and each put in 100K. Creating an LLC is straight forward but buying a property via a LLC is quite confusing.

When buying as a LLC, how do banks determine our credit line (can we combine everybodies). Or should each buy one initially and transfer over to the LLC.

Thanks for any advice.
ChrisB

3

Re: LLC - Posted by Clint

Posted by Clint on April 25, 2006 at 19:51:11:

Four individuals would probably fare better in an S corp or C corp, however, your tax advisor and attorney have given you advice on that, right? And you all have first right of refusal to purchase out the other owners? And 100 other contingencies, correct?

Now as to the LLC, you are going to have to get with your banker, (got one of those too, right?) He or She will most likely advise you that they cannot loan to the LLC without two years of tax returns or they may be able to under full recourse with one or each of you backing the loan.

Do research, spend money on competent advice from legal, financial, and tax professionals. If you are spending 100K, the 5 grand or so for competent advice will be money well spent!

Clint