New to Real Estate · Member since 2019 · 21 posts · 3 votes
I recently refinanced the mortgage on my primary residence and combined the loans I took out to purchase my investment properties. I have three single family, long term rentals with separate LLC's and business accounts for each property. I am planning to make the mortgage payments from a combination of the business accounts and my personal account. Now that I am mixing finances, am I negating the protections provided from the LLC and opening my personal assets up to a potential lawsuit ?
If you document clearly in your books that the money you received from your home mortgage was then contributed to your LLC and that the money is going back from the LLC to you as distribution before going to pay the mortgage that should be fine.
Another option would be to have your LLC assume the mortgage and document it as such in your books.
What would create problems and commingling would be your LLC paying the mortgage without receiving the funds to start with.
Thank you for the reply. Does it make any difference if two of the properties and a portion of the third were purchased by taking a HELOC from my primary residence ?