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Answers (6)
- Michael Dorr, "Michael Dorr"
- Contributions:93
I like Jamies answer as it comes down to the effective cost. Cash out of a primary is deductiable to 1M, unless the overage for investment. Again for the CPA-Also, if you blanket the loan across both properies, and thing go ugly, and they can, you have two properties at risk on one loan. Commerical more costly in loan fees-apprasial-Enviro-.....The question then become the net effective so=CPA. Also, if yoou have that much equity is your scenario the best use of arbitrage and liquidity.
- Walters Consulting
- Contributions:1661
I let my few investments stand on their own legs..
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
...between business and personal
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Wise man say no comingling of debts and assets.
- Jaime H. Ayalde, "Jaime H"
- Contributions:61
Remember that this loan is an investment into your own building and business which is placed at risk to the amount lent to the LLC. You will take the risk vs the Bank. Is the interest rate differential worth it?
For this reason many do not recommend to commingle asset classes.
For this reason many do not recommend to commingle asset classes.
- Jaime H. Ayalde, "Jaime H"
- Contributions:61
It is best not to mix apples and oranges. One is commercial and the other residential. Best to ask your CPA tax treatment and deductions will be a big factor. Interest on the building are fully deductible as a tax expense while residential are only deductible based on your tax bracket and only if you itemize.
Having said that, residential owner occupied properties carry the best terms. If you have the equity, take it out of your residential for investment purpose. Form a LLC and lend that to your business to pay off your commercial building.
Having said that, residential owner occupied properties carry the best terms. If you have the equity, take it out of your residential for investment purpose. Form a LLC and lend that to your business to pay off your commercial building.
Which is better to do, Refinance on your business building or refinance on your home?
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