“I am not sure exactly what you mean but I do not have an LLC or S CORP. I am going to look into setting one up after I have a strategy perfected.”
LLC or corporations are complex entities that require common sense. if you can understand the relationship between you and THE LLC or CORP, then you will do well. if you have a misunderstanding of exactly what this relationship is, you will have multiple problems, get confused, discouraged and finally just say f it.
starting an LLC or Corp, requires knowledge. i did it backwards - within one month of my “new found” career in rei, i went ahead and just started “my LLC”. i did business cards, the whole gamet - only to find that THE LLC had no leadership, no marketing plan, no business plan, too little financing and no defined mission or operational systems. it didn’t have any of these because i was so wrapped up in find out about rei, that i ignored the BUSINESS aspect of running THE LLC.
now many can minimize a business plan and financing to death. they can tell you a good business plan is
buy
fix
refi
rent and
repeat
they can throw some numbers at you and tell you how they did it, BUT, the difference is - they have done it. they are in the business. they are ADVANCED rei’s.
additionally, some of them may be leveraged to kingdom-come, own 10 houses with over 1 million in debts and a total positive cash flow of 600 a month…that’s very bad. to make matters worse, many of them may be involved in wraps, lease options and the like, where they have concealed this from their lenders…this is very bad.
bad means “risky”. the higher your risk variable - the worse off you are.
buy, fix, refi, rent is a great strategy, as long as you have all the details worked out. details such as, limiting costs that will literally eat up most if not all of your profit margins. however, you need to know what these costs are in order to limit them in the first place.
knowledge about business really is the key. i do not care at all about what anyone says in any forum or in any guru commercial - if you don’t understand business and money - you’re risk variable will be VERY high.
so don’t look at an LLC as “having one”. look at it for what it is, a business that requires, leadership, business planning, financing, marketing and systems of operation. at least the very basics of each of these.
check out www.noobdogs.com [click on it, if it doesn’t come up, click “back” and then “forward”.