LLC structuring, holding company? Or not

[Dustin Awtrey]

I am in the process of building an 8 unit complex. I'm going to have an LLC to put this development in. Then after this development I plan on doing others , each having their own LLC. My question is, should I have an LLC holding company to put all my different properties in? My thought was the holding company I would send all my monthly rents to, and all the expenses would come in and out of the holding company and I could eventually treat the holding company as a real estate acquisition company and apply for loans in the holding company's name. Is this dumb? Or should I just have a different LLC for each development and that's it

[Chris Seveney]

@Dustin Awtrey

Having worked for developers - typically they had a management company that was paid a management fee and each development was an LLC.

I wouldn’t say it’s a holding company.

If they were held for rentals they then had a property management arm as well who collected payments.

For these types of loans, find a local lender and build a relationship with them, they will want a personal guarantee but if your doing it consistently they typically wont care if it's in multiple LLC's they will look at the deal.