Basic LLC Strategy Questions
Hello!
I have some basic LLC strategy questions. I appreciate any input or resources you can direct me to. Thank you!
A quick background on my situation to preface my questions: I own two duplxes with mortgages on each one in my personal name. I intend to buy more duplexes with traditional loans, however I have had interest from various people about investing their money in my (evolving) real estate business. This leads to my two questions about LLC strategy.
#1
I want to create a company that I would be able to present to potential investors. If I do create that company in the form of an LLC should that entity actually hold the properties that I (and my investors) will purchase? Or should it just be the face of the business while individual properties are held in separate LLCs?
#2
I cannot have my current properties held by an LLC since they are financed by traditional mortgages in my name. From what I have heard I would need to refinance, put 25% down, and personally guarantee the loan anyway to get it in an LLC. That being said, should I create an LLC for property management and use it to advertise, collect rents, etc?
What has worked for you and what would you recommend? Thank you!