Questions on using a LLC to purchase homes.

3 Replies

Hi BP,

I am curious, I just recently created a new LLC and never used a LLC to purchase a home before. Before I can use this LLC to buy a house, should I open up a bank account for it first? Let's say that I planned to use hard money to purchase a house, could I purchase the home with my LLC, wire the EMD money in through my personal account and have the hard money wire in the rest of the funds into escrow?

You do not need to create a new bank account to use your LLC.

Yes - you can wire the EMD from your personal account and then use the hard money to close on the rest of the property and they will wire the funds to escrow for you.

How is your llc going to do business without a checking account?

Why would you form an llc, supposedly for liability protection, then commingle funds by personally paying the llc bills, immediately killing any protection you thought you had?

Wayne is exactly correct. The LLC needs to buy the property with ITS money or credit and you can be the signing member or manager of the LLC. But by commingling personal funds with your LLC funds, you make the case that you're using the LLC as a front for your personal business and you should be liable for anything personally as well as the LLC.