Creating a Holding Company to allow 1 blank Mortgage or many LLCs

Creating a Holding Company to allow 1 blank Mortgage or many LLCs

Investor · Janesville, WI · Member since 2013 · 180 posts · 155 votes

Has anyone looked into or have actually created a Holding Company which would hold multiple LLC's underneath it, then go to a bank and do one blanket mortgage with the holding company for all properties owned in the LLC's underneath it? I ask as I currently have multiple LLCs and have a bank willing to give great terms on a mortgage over $750,000 - However, I don't have $750K in any one LLC and obviously can't do multiple separate mortgages to multiple separate LLC's and still qualify for the terms. My thinking was to create a Holding Company and then have the bank do a single loan to the holding company that would encompass all the properties underneath it. The bank already said they would be willing to do this. My concern is does that break down and defeat my asset protection structure in the first place, as I may be acting as a single entity in terms of the bank loan? This may also apply to Insurance Purposes as well, just curious to see what other investors have for thoughts on using a Holding Company for this approach.

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  • Nederland, TX · Member since 2016 · 109 posts · 92 votes
    9y

    Hey @Chris Heeren  Did anyone give any advice on this privately?  Have you thought of using a Series LLC to complete this?  You could have your series LLC with each of your multiple properties as a separate "series" within the one LLC.  Each "series" would be its own entity and protected as such but your LLC might be able to get the large 750k loan (depending on the bank).  Please note I am no expert on this but from what I understand of the Series LLC offered here in TX this might be a possibility.

    Also, I just listened to the podcast 197 with your interview. Very well done. I am very impressed with the progress you have made over the last 3 years. Where you able to quit your 9-5 in March as planned? I would love to pick your brain if you can spare 15 min and I will be more than willing to share what I know of series LLC (note i'm an engineer and not a lawyer). If interested feel free to PM me.

    A lawyer's info about series LLC can be found here

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