I am trying to understand member loans to an LLC that will contain a rental property. Let's say the member's loan is to buy 50% of the property, and that the member will be paid back principal and interest over time. Does the member own 50% of the property or the LLC? Once the loan is repaid back to the member fully, then does it mean he does not own any part of the property or has 0% membership in the LLC? I guess I am just trying to understand this concept of loaning to the LLC instead of outright buying the rental property in the LLC. Thanks.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you