Is it necessary to start a business entity immediately when wholesaling?

Bird Dogs, Wholesaling
1

I’m just wondering what other wholesalers have did to get their business up and running. I’m a newbie to the game, and I want to get my ducks in a row before I put my feet in the water. Should I approach this business setting up a LLC first with business cards and what not, or should I just start with my name and gmail account…a little less professional. Any feedback would help…

Thanks,
Sierra

2

I’m not a wholesale investor, but I don’t think there’s really anything to protect liaibility-wise when wholesaling. I would check into just filing for a doing business as (DBA) name if you want a business name. It will be a lot cheaper and less work than starting an LLC…not that LLCs are really that difficult either.

3

I started an LLC because I want to be able to get business credit in my business name only. I am looking for business credit so I won’t have to use my own cash to expand my marketing. Also, as I learn more about other RE strategies, it is good to have business credit available in case I want to try something else.

Like I am thinking: what if I get a property needing only light rehab with seller financing? If I had the business credit available to cover the repairs, it would make a great first flip. Anyway, that is why I got an LLC.

4

Depends on what you’re looking to do. If you’re like Kelle, then yes. But, if you’re like most wholesalers starting out, then no. I, personally, did not start a business till I had a few flips under my belt and decided this was something I was going to pursue as a career. If you start up an LLC now, and then get frustrated in 3 months and quit, then you’re out a few hundred bucks for nothing.

But, it’s your call.

5

@ Sierra: Why do you think you need an LLC?