Hello everyone, I have been slowly getting back in buying some REI's but had a question concerning an LLC. Or some advice what would be the best thing to do in my situation. My father came into some money when his dad pasted away and he is putting up some cash for some investments for myself and maybe my sister. It is great that he wants to put up the cash but my concern is with his past history so to speak. He has never been the kind of guy that crosses the "T's" and dots the "I's" especially when it comes to taxes. So naturally that concerns me because I am the total opposite. At this point he doesn't plan to be on title for the purchase of this property. He has mentioned that maybe we all 3 should start an LLC for investments with him just being the person supplying the cash. My concerns with that are, can a persons personal debts be a concern of an LLC they are apart of? What should I be concerned with?
I am also planning so start an LLC for just my properties. If you have an LLC then do you have to have commercial loans for the LLC or can they be personal bank loans as well? IF you have properties now then can they be changed to be under the LLC? What would you do?????
if you plan to get mortgages on your properties, lenders will lend to individuals and you'll need to deed the property into the LLC. The person will still have to personally guarantee the loan, even if it's in the LLC.
The formation of the LLC only really protects members personal assets in case of lawsuits against the LLC.
The tax preparer for your LLC will provide a K1 statement for each member that will flow to their personal taxes. If there's an issue where a member doesn't properly prepare their taxes, that doesn't affect the LLC.
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