LLC To Build My Own Buildings?

 
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Old 11-07-2017, 12:35 AM   #1
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LLC To Build My Own Buildings?


i am going to be building some new rental buildings, and i will own them.
do i just build the buildings with my llc? put money into llc to pay subs and materials?
i want to know the best way to protect my personal investments and property while building.
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Old 11-07-2017, 05:34 AM   #2
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Re: LLC To Build My Own Buildings?


Best way to protect your assets and safeguard your future would be to consult with a reputable accountant and or attorney about this.

Your probably wondering what something like that might cost?! In my experience.......about tree fiddy!

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Old 11-07-2017, 06:37 AM   #3
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Re: LLC To Build My Own Buildings?


Good Advise above!!

Also I might wait to see how the new tax plan effects LLC vs. Corporations before committing to structure,
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Old 11-08-2017, 12:01 PM   #4
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Re: LLC To Build My Own Buildings?


Quote:
Originally Posted by NJGC View Post
Best way to protect your assets and safeguard your future would be to consult with a reputable accountant and or attorney about this.

Your probably wondering what something like that might cost?! In my experience.......about tree fiddy!

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thanks for nothing


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Originally Posted by Pearce Services View Post
Good Advise above!!

Also I might wait to see how the new tax plan effects LLC vs. Corporations before committing to structure,
well i won't have income, so tax is not an issue.
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Old 11-08-2017, 12:04 PM   #5
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Re: LLC To Build My Own Buildings?


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thanks for nothing



well i won't have income, so tax is not an issue.
I just gave you gold, if your to stupid to figure that out I'm sorry and you will be also.

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Old 11-08-2017, 04:52 PM   #6
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Re: LLC To Build My Own Buildings?


I thought this was a forum where we could discuss things and share ideas, not a place where we just bark out to "hire a professional".
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Old 11-08-2017, 06:17 PM   #7
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Re: LLC To Build My Own Buildings?


Far too many variables to answer this question. May be as simple as a builders risk insurance. Most builders around here set up their rental properties under a separate llc aside from their business and personal. Sounds like enough $$$$ to talk to your account and lawyer.

Seeking legal advise from contractors is like getting sex advise from a nun!
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Old 11-08-2017, 08:30 PM   #8
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Re: LLC To Build My Own Buildings?


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I thought this was a forum where we could discuss things and share ideas, not a place where we just bark out to "hire a professional".
Ask us about the best way to flash a window or demo tile on a slab...we are contractors not attorneys.

It was solid advice. I know my attorney would say to put them in the LLC's name but he knows my situation. We don't know yours.

Why won't you have any income from rentals??
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Old 11-08-2017, 09:06 PM   #9
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Re: LLC To Build My Own Buildings?


Brother 4th says. "Sadly a large fraction of the USA's economy involves taking stuff from upper middle class to lower mid upper class persons that have 100,000 to 25 million in assets, but not a full time attorney and/or a skilled honest underwriter...."

Hiring a G C might actually be CHEAPER then DYI-ing it without adequate insurance to cover your possible losses....

Corps and LLCs that have just one owner aren't to hard to roll over by a competent attorney or public official....

When you sell a building YOU built, how can U deny ANY flaws to a potential buyer when you caused every one of them?

A possible strategy would be to lie and say you are acting for an imaginary third party to kept some of the ambulance chasers away.... but that would be tough in today Info-Super Highway days....

Most subs and material suppliers will rationally try to squeeze you out of the fraction of GC's Overhead and Profit, you're trying to save through vertical integration...

You might build a spread sheet that shows what happens to the cash flow if you make some management errors that delay the date of legal rental by 1 to 6 months..... A large job should have the daily cost of delay figured.... for decision making.

I'd Ass-u-me your Pro lawyer/accountants will suggest you use the corporation that will be needed to shield your equity from the rental slime sue monsters to build the rental housing first....first keep the purpose of the incorporation general enough to cover any legal acts where it operates in the World.....instead paying constantly for new false front LLCs that can't grow flexibly as full C Corp. IMHO.

Even Kevin Spacey couldn't hide his perversion for ever...

As a one time customer, self general contracting building owners rarely get premium service, or best prices, nor timely work performance as they can't "punish" marginal work with future project denials.....

Please post back with what ever you decide to do please.

And I'd love to see a tread on GCing one's own rental building when it happens.

Last edited by Fouthgeneration; 11-08-2017 at 09:27 PM.
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Old 11-08-2017, 09:45 PM   #10
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Re: LLC To Build My Own Buildings?


Quote:
Originally Posted by jstanton View Post
Far too many variables to answer this question. May be as simple as a builders risk insurance. Most builders around here set up their rental properties under a separate llc aside from their business and personal. Sounds like enough $$$$ to talk to your account and lawyer.

Seeking legal advise from contractors is like getting sex advise from a nun!
i wont have enough cash to fund all the buildings, so i will need to borrow. and having the buildings held by an llc is a major roadblock with lenders. having an llc to manage the buildings is ok however.

Quote:
Originally Posted by overanalyze View Post
Ask us about the best way to flash a window or demo tile on a slab...we are contractors not attorneys.

It was solid advice. I know my attorney would say to put them in the LLC's name but he knows my situation. We don't know yours.

Why won't you have any income from rentals??
oh, i will have income from the rentals. i wont have construction income from building the buildings.

Quote:
Originally Posted by Fouthgeneration View Post
Sadly a large fraction of the USA's economy involves taking stuff from upper middle class to lower mid upper class persons that have 100,000 to 25 million in assets, but not a full time attorney and/or a skilled honest underwriter....

Hiring a G C might actually be CHEAPER then DYI-ing it with adequate insurance to cover your possible losses....

Corps and LLCs that have just one owner aren't to hard to roll over by a competent attorney or public official....

When you sell a building YOU built, how can U deny ANY flaws to a potential buyer when you caused every one of them?

A possible strategy would be to lie and say you are acting for an imaginary third party to kept some of the ambulance chasers away.... but that would be tough in today Info-Super Highway days....

Even Kevin Spacey couldn't hide his perversion for ever...

As a one time customer, self general contracting building owners rarely get premium service, or best prices, nor timely work performance as they can't "punish" marginal work with future project denials.....
i'll be doing some of the work myself. been in the business for a long time. just never built my own.
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Old 11-09-2017, 06:55 PM   #11
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Re: LLC To Build My Own Buildings?


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i wont have enough cash to fund all the buildings, so i will need to borrow. and having the buildings held by an llc is a major roadblock with lenders. having an llc to manage the buildings is ok however.
I'm not too familiar with bank lending without knowing some of your numbers. I would think having a ownership LLC with enough insurance to cover the project with the bank as additionally insured would work. Not sure how a brand new startup LLC management Co. would help with the bank. I've also seen partial project funding where they release more money based on completion mile stones.

I would have 3 steps in mind

1. Meet with bank and find out options.
2. Talk with account about best fit for you.
3. Have lawyer write contract covering your ass.

Good luck, I have always found smaller/local banks to be much more flexible.
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Old 11-09-2017, 09:16 PM   #12
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Re: LLC To Build My Own Buildings?


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Originally Posted by jstanton View Post
I'm not too familiar with bank lending without knowing some of your numbers. I would think having a ownership LLC with enough insurance to cover the project with the bank as additionally insured would work. Not sure how a brand new startup LLC management Co. would help with the bank. I've also seen partial project funding where they release more money based on completion mile stones.

I would have 3 steps in mind

1. Meet with bank and find out options.
2. Talk with account about best fit for you.
3. Have lawyer write contract covering your ass.

Good luck, I have always found smaller/local banks to be much more flexible.
well my parents are builders too, and have gone through the same situation. though they are just running as sole proprietor. hence why i want an llc to offer some more protection.
as for the lending, its not easy gettting financing. a construction loan? forget about it. use own money to build the buildings, rent them, then banks will loan out.

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