You are killing it with all these creative strategies. So Wyoming LLC will have its bank account, the Biz LLC will have its own bank account that will accept the loan deposit. Both entities taxed as S or C Corp. The UCC is filed as encumbrance to inflows coming into the Business LLC in the amounts of loan made. (1) So physically what paper trail do you need to keep for the loans? (2) where would you make the physical filing of that UCC? and (3) Do u file a UCC each time you make a loan to the Business LLC in the loan amount?
The lending LLC would be a partnership or disregarded. The UCC would be one filing with the secretary of state where the operating company is organized. I would only make one filing for a blanket loan commitment.
This is very interesting! I'm your client at Anderson. Do you suggest UCC1 from Wyoming holding LLC or create disregard LLC in the states I'm lending and the create UCC1 to S or C Corp? Since, in order file claim in case of lawsuit to S or C Corp, you have to register in the state your are doing business?
Clint, thanks for creating such a great step-by-step guide. This is fantastic. I do have one doubt and wanted to make sure I understood this correctly. Let's say the lending biz is a Florida LLC, (could be Sole or multimember LLC) and taxed as a c corp. Since we are lending it would make sense to show who the members are just like you said in the video and we would get paid as employees via W2 (saw it in another video). For the WY LLC, it would be member or mgr-managed since it does not matter and we would use the UCC1 with the lending biz in FL. Would you set it up as a disregarded entity for taxation or partnership (K1)?
@@ClintCoons Thank you for the response. In other videos, you talk about using Delaware instead of Wyoming if one was doing commercial or multi-family RE. This would be holding RE but lending but let's say we may look into holding some in the future. is there a video where you go into detail on the two?
No one on RU-vid has posted all the Wash dc or federal requirements or regulations for starting a lending business despite the many RU-vid videos on the topic. It would be very helpful to do so. Many thanks!
Thanks for the info, Clint. Wondering if going through all these entity steps is feasible for someone just getting started with 10k? I’m in Cali and have an opportunity in Memphis.
In Hampton Roads, Virginia we are able to cover a purchase $90K and rehab $35K for a total loan of $125K. If you use your SDIRA to lend the money out it’s totally tax free returns. I would also say it depends on where you are lending. San Diego California you’re looking at $500K purchase and $250K rehab!!! 🙏🏽
Hi Clint, I went back and watched your video and had an additional question. In the scenario provided the holding company was to hold funds and then loan yourself (Lending LLC) and execute a UCC1. Let's say I plan to use my funds but would also consider using other people's money ( family and friends) would their funds flow (via loan) into the holding LLC or directly into the lending LLC.
@@ClintCoons Agreed, loved your video on syndication where you touch on Reg D etc. Assuming all that followed it could flow directly into the lending company but what if it goes int WY holding to ensure everyone’s interest is covered all with the UCC1.
How can a general partnership be setup such that one partner (of two) retains their qualification for medicaid as the general partnership earns a profit as interest on private money loans ?
Not convinced a lender needs asset protection via LLCs. He's not selling a product, nor engaging in dangerous behavioir. He's not a doctor, etc. Just seems like overkill. Please convince me to the other side of the argument!
Bam you kid just ran his car into a 3rd grader in a crosswalk. You are correct in your initial assumption. The asset protection threats will not materialize from the lending - they will materialize outside of the entity.
