All Forum Posts by: Robert Keeling

BACKGROUND:

I currently own two LLC's. One is only in my name, and the other is a partnership with a good friend and business partner.

I started out by utilizing my VA loan and ended up with a SFH and a 4-plex, and I now rent a 4/3 house out by room (i live in the master and rent the others out to cancel out the debt). Obviously, these properties are purchased in my personal name. I utilize LLC-1 for all financials. My personal and business finances do not co-mingle. Mortgages/rent get taken out of the LLC-1 account and rent gets deposited in. All other transactions are done in the LLC-1 name (in terms or maintenace invoices, etc.). I only use the LLC-1's credit/debit cards to pay for expenses.

My second LLC is one with a business partner. We currently are in a JV with someone to help fund their flip, and that JV agreement was drafted by our attorney in the LLC-2 name. We are looking to purchase rental properties with this LLC, amassing long term passive income, and snow-balling our gains into bigger and better deals. We plan on doing the same thing with this LLC-2 as I have done with my LLC-1, in terms of not co-mingling funds. We already have an LLC-2 bank account, debit/credit cards, etc. We plan to use the LLC-2 money as payment for expenses, and to have all profits sent straight to the LLC-2 account. We do not plan to pull anything out (for personal payments) for at least 5-10 years.

We constantly hear of people purchasing their rentals in their own name, and half of the BiggerPockets Podcast guest seemed to have at least started out buying in their own name too, but as a fresh business (and being younger men ourselves) we are concerned with the "piercing the corporate veil" aspect if we get sued.

QUESTION:

Starting out, should we purchase properties in one of our personal names, being able to get better terms/rates, until we hit 10 properties, and then start utilizing commercial lending through the LLC-2 name(or still in our personal name?

Or should we only ever purchase in our LLC-2 name to keep our personal names away from in, and not "pierce the corporate veil"?

Are we being 'overly cautious' trying not to 'pierce the corporate veil"? It is easier to purchase in our personal name, so if this truly doesn't matter then we will be able to likely purchase something and make offers ASAP.

Any advice for a young company starting out would be greatly apricated.

 Hahaha, hate myself for that!

Hello all, hoping you can point me in the right direction.

Me and my partner are looking to incest remotely outside of our local areas and one of the locations we are interested in, for various reasons, is San Antonio. We want to be pretty hands off in terms of "working" the STR, and were curious if anyone had suggestions on how to find a good STR property manager in the area.

Alternatively, are there are "name brand" companies that specialize in this (remote STR mangament)? If youce dealt with one; Who? How was teh experiences? Pros/Cons?