LandInvestors.com Forums **Ask A Question** Using Plastiq legally via Fund and Grow lines of credit

  • Creator
    Topic
  • #21596

    Collins B. Case
    Participant
    Post count: 14

    How are you guys using Plastiq to purchase property in the name of your business?

    Back story: My LLC is less than a year old so Fund and Grow secured credit via a Sole Proprietorship in my name. At this point, what is the best path to use the multiple lines of credit to purchase property in my LLC’s name without piercing the veil? Thank you for any insight and no need to mask replies with “I’m not an attorney…”

Viewing 6 replies - 1 through 6 (of 6 total)
  • Author
    Replies
  • Michael Aillon
    Participant
    Post count: 292
    Pro

    As the owner of the LLC, you can make capital contributions. Just document it.

    Collins B. Case
    Participant
    Post count: 14
    Pro

    Agreed Michael. Unfortunately this doesn’t address the obstacle (Plastiq does not permit the transfer of funds from credit lines to your business).

    Anyone else know how to use Plastiq efficiently for purchasing property in the name of your business?

    Trevor Probandt
    Participant
    Post count: 144
    ProAdvanced

    What are you trying to do with your land? Buy and hold via owner carry? Flip for cash? Etc?

    If you are going to be buying and holding, the work around IMO is buy them in your name. Then transfer ownership in your LLC. It will make accounting a bit of a pain, but if you are buying cheap dirt and owner carrying them it isn’t a big deal. If you are buying and selling for cash….just buy in your name. You are going to pay earned income tax levels either way. In most states you will simply deed it to your LLC for $10 or whatever and you are done. LLC owns the parcels, Plastiq or whatever allows you to buy it and simply record another deed. $18-$20 a deed. Which you can transfer a bunch of them onto one deed if you want.

    That is what I would do.

    Michael Aillon
    Participant
    Post count: 292
    Pro

    I haven’t used Plastiq yet. But I did use the GoldMoney.com technique (buy gold with a credit card, then immediately sell it). It takes a few days to get the cash but once you have it things get a lot easier.

    Collins B. Case
    Participant
    Post count: 14
    Pro

    Thanks for the reply! The strategy is to flip.

    Mike T
    Participant
    Post count: 23
    ProAdvanced

    My bank gave me a LOC that was 10% of last years sales up to $50,000.00. I had over $500,000.00 in sales so they gave me the $50,000.00. May want to check with your bank if you have a decent amount of sales.

Viewing 6 replies - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.