Hi all, I have 2 current LLC companies. They are both just piddly little businesses that never went anywhere (no biggie though, I have almost nothing into them)
These were formed in feb 06. I still sell stuff from both of them but not much. I am considering changing the name of one of them to be my RE company. It’d seem like a no brainer to get the benefit of them being in business for almost a year but heres my concerns
The businesses really don’t do too much in sales. Will that be negatively looked at or will people mainly be concerned about the time the business has been opened. I guess I am concerned about lines of credit and regular 30yr lenders.
There was a little comingling going on in the beginning sort of. I simply stopped using a personal credit card and started using it for business. Except for one thing that gets charged each month that is personal. I do write a check to the business to pay it back for this but It’s still comingled. I know this is the biggest way to “pierce the corp vail”
SHould I start fresh with a clean new LLC or go back in and clean up my records if even possible?
mcwagner - I was more concerned with my legal protection should I get sued and somebody looked back on my little commingling sins and decide I wasn’t really acting as a llc because I commingled. That’s why I was thinking of starting a fresh LLC. But I wanted/want to take advantage of the current LLCs almost year of being in existance.
I am terrible with the numbers. NO, I don’t understand it well enough. Thats one of the things I have to figure out better. I have read Cashflow quadrant which gave me some idea of the relationship but I need more. I will be going to a Cashflow game to see what I can learn there.
just download a financial statement from a site online. there’s plenty of them and you can get them for free.
i used them as a template and just started doing my own. i figured out the interest i pay on two loans i have (car loan an student loan) per day and i developed a plan to pay X amount per month to pay them off on an accelerated rate at my current income (which will be increasing steadily over the next year and the following, hopefully dramatically.
the balance sheet and income statement (your financials) will give you the practice you need in analyzing the flow of money and how you manage it and what you need to do to better them.
what you must realize is that most people will focus on decreasing their liabilities…while this is good, it also contradicts how most people achieve wealth…especially in real estate, but also in business in general.
a business needs money to operate and most business you will see, borrow to grow…go public to explode…it’s the financial statements (balance sheet) that tell the story of how that money is being used and where it came from.
do your own personal financial statement. get one from your CPA…if you don’t have one, GET ONE!
you can do it…you must…sit down and just hammer it out. the first 2 or 3 times will be rough, but by the 4th or 5th one… (do two a month) - you should be well on your way.
pm me to get the basics on how to do it. mc can also tell you i’m sure.
I will learn those statements so I have a good solid grasp of them. I do need to get a CPA and got a referral in the tax lien class I just took. I have a tax guy but I don’t know what experience he has with RE, if any. So, I will be checking into that referral. Have you played cashflow?
And, my wealth building (debt) will start around year 3 when I get my first rental. For now, I am focusing on building cash through flippers so I can have more financing options.
