Creating multiple LLCs

[HoldAndBuy]

Thanks, that’s just the information I was looking for.

@BLL post:59

@HoldAndBuy post:58

when you do equity stripping by loaning from another entity to an LLC, is there an actual lien on the house inside the LLC now, or is it just that the “borrower” LLC owes money on demand? Is this something that has to be set up like a mortgage before you purchase the house or can it be done after the fact?

It is a mortgage. Money changes hands. Documents are filed with the Registry of Deeds. A proper closing takes place. If you are purchasing the property with cash, you can do equity stripping when you buy. Doing it after the purchase can be compared to refi. Just remember that real money must change hands and you must do everything as if it were a regular mortgage.

Here’s a discussion of what can go wrong if you don’t do things properly.
www.assetprotectioncorp.com/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=1;t=000877