Updated almost 10 years ago on . Most recent reply
Private lending to an LLC (Legalities?)
My attorney is being a bit slow to respond as to the legal framework, so I figured I'd reach out to BP and get some input.
I want to set up a series of private mortgages between one LLC and another LLC. LLC #1 will lend to #2 via secured collateral/properties at specified rates.
My primary concern is the legality behind this, and what kind of contracts/paperwork would need to be set up between the two. Filing a mortgage lien against a property in the county of location is easy enough, however i need to know what I may be missing in the process.
Most Popular Reply
I would not do it LLC to LLC...although many, many investors do. I would have an S Corp own the LLC's...wait for your Attorney to structure this with you...if they can't or are unsure, find one that isn't.