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Updated almost 10 years ago on . Most recent reply

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12
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1
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Mark Poshak
  • Investor
  • Broomfield, CO
1
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12
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Using a friends money - taxes and LLC thoughts?

Mark Poshak
  • Investor
  • Broomfield, CO
Posted
Looking to use a friend's money who is interested in investing to buy rentals and flips. Two questions: 1) can I borrow money from him, like an unofficial hard money lender, without us being in an LLC together? He would get a % return, but would he still have tax benefits? How do we track the money in and out? 2) Similarly, if I have an LLC and he has an LLC can we go in on a property together? Would we have to form a new LLC or a partnership with our LLCs together? Basically having trouble figuring out how to track money in an out. Thanks for the help. Mark

Most Popular Reply

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Bryan O.
  • Specialist
  • Lakewood, CO
1,198
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Bryan O.
  • Specialist
  • Lakewood, CO
Replied

@Jeremy Tillotson is right. Figure out what you want to do and set it up. If he only wants to be an outside lender, he loans to you, you pay him interest, done. If you think you want more, or he wants equity and depreciation or something, then make an LLC together that spells out ALL YOUR RESPONSIBILITIES and move forward that way.

Define what you want. Almost anything is possible.

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