OK, so I form an LLC and transfer my 3-unit ($190K value, 80K equity) into it.
I also own 2 vacant residential building lots. I would assume that transferring these into the LLC would provide additional asset protection by getting them out of my name, but would this help the LLC, as the business it is, qualify any more easily ON ITS OWN for financing for additional properties? Note that I don’t want to build rentals on this land.
I have full equity in these 2 lots, combined value of about $175K.
My desire is to have the LLC ramp up its ability to borrow without a PG as soon as possible. How would lenders look at this setup?
it would be an asset owned by the LLC with no accompanying debt. that’s always attractive to a lender.
OK, suppose I later decide to build a new personal residence on this land. Would I be able or even required to transfer the land out of the LLC? I realize there’d likely be a problem if the land was collateral for any loan at that time.
no reason the LLC can’t build a house and sell it (that the LLC sells it to you is of no consequence) or even rent it to you.
but you should avoid “hokey pokey” equity contributions.
let’s all sing along…
“you put the left house in, you put the left house out, you put the left house in and you shake it all about…”
LOL Mark…my intention in adding the land to the LLC is to gain some more financial clout within the LLC.
Would “in and out” once, should I do it that that way, be OK for this lame dancer?
I really appreciate you help, Mark.
Probably “ok,” but I wouldn’t.