LLCs vs Individuals and financing/refi

[Michael D. Menesses, Jr.]

Rookie investor about to buy 1st property in Louisiana. Please correct anything below that seems incorrect, or misunderstood. I’m trying to see big picture, beyond this first door, so I don’t lock myself out of more purchases while paying this first one down.

I've read a bunch telling me to definitely use an LLC to limit personal exposure. I get that.

I also know that banks are reluctant to lend to an LLC vs an individual. My agent and broker tell me that I can acquire financing and purchase as an individual, then the property can be swept into my LLC @ closing. Ok.

Let's say I do a 90% LTV cash out refi on a property held by my LLC. Does that money go to the LLC? To me as income? How do I get from the first to the second property after the refi, and how does the LLC effect that?

I guess my question is: How would I move money between the LLC and myself to make more purchases, and how would that not be co-mingling of funds and allow piercing the corporate veil?

I understand the idea of BRRRing properties, but I don't understand how to advantageously use an LLC in the strategy.

If this lacks clarity, please excuse, and ask what you need to know. Any and all advice is greatly appreciated.

[Kerry Baird]

There are many more reasons to just get started and not worry about the LLC quite yet. If it keeps you from taking action, well, skip it for now. Insurance and having a high mortgage balance will protect you for now.