All Forum Posts by: Account Closed

Thanks for all the input. If it's a duplex, should i have two separate accounts for the security deposit?

Hello,

I'm closing on my first deal and have decided to hold off on putting the property under a LLC. Since I wouldn't have an EIN to create a business checking account, am I allowed to simply open a new personal checking account and tie that account to any P&L for my rental property? I wasn't sure of best practices for owners not holding the property under a LLC. Thanks!

Sorry I had my terminology wrong. We plan on leveraging a Series LLC (SLLC). We mainly are trying to determine how we would transfer funds to the individual who would provide the down payment for conventional financing (lender has approved transfer of deed to a LLC so we do not have to worry about the due on sales clause). We're unsure if that we be considered gifting and if there would be tax implications to the individual receiving the other 3 partners portion for the down payment. I hope that clarifies the question and intent. Thanks!

Hello. Does anyone know how the below scenario would work out?

Four partners investing in real estate under a Series LLC operating in the state of Texas.

What happens when we transfer money for a downpayment to a specific partner who will then take out a conventional loan? (Or if we transfer the money after the fact to reimburse the partner who paid upfront.)

Our lender is accepting of a deed transfer to a land trust.

Thanks!

Hi BP Community,

Can you provide some guidance on the best way to purchase a rental property given the below scenario? Thanks!

4 Partners planning to purchase rental property using conventional financing. Our lender has approved of our plan to buy the property as a single individual and then transfer the deed to our S Corp. Ideally, the four of us will alternate between purchases. Our question is how do we transfer the funds for the down payment to the individual who will be taking out the conventional loan? The bank doesn't care how the individual gets the funds as long as they are secured in their account 60 days prior to applying for the loan. We're wanting to know if there are any tax implications since the three not taking out the loan would be "gifting" a large sum of money to the individual taking out the loan. Is there a common way to accomplish this? We were told the funds could not come out of a joint account. Our other option is to have the individual have the liquid to cover the down payment and then send them our portion of that payment after the fact but again are worried about potential tax implications for moving that large of an amount.

Any insight you can provide would be greatly appreciated as we look to begin our journey. Thanks!