BRRR funds in own name, what happens with LLC?

Question

I'm buying a house for cash using funds from my personal accounts. My plan is to buy the property in my LLC name. When I refi, am I going to run into legal issues taking the cash back into my personal account? Should I write it up as some sort of loan to the LLC?

Eamonn McElroy · Answer

Easiest to just code cash in as "owner's contribution" and cash out as "owner's distribution" on the balance sheet. No need for a loan. No tax effect.

Shouldn't create legal issues but I'm not an attorney. Cash out refis are common.

Amanda G. · Answer

Hi @Eamonn McElroy

Single owner, LLC, disregarded entity.

Eamonn McElroy · Answer

What is the LLC's tax status? Disregarded entity, partnership, C Corp, S Corp?

BRRR funds in own name, what happens with LLC?

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