Hi, Ive noticed that some investors have this printed on their bussiness cards. What is this? Is this somthing investors who have just started buying real estate should do? or have?
i am by no means an expert in this area, but i think its the general consensus that you should do your investing through a corporate entity of some kind, it greatly helps protect you from lawsuits because, IF you do it right, you basically seperate your investment properties from your personal property and assests (and even your other investment properties, if incorporated seperatly). the type you need (LLC, LLP, LC, sole proprietorship, etc.) i think depends on your situation.
LLC’s are easy to form, i did mine online for $50 (go to your secretary of state webpage–cost differs by state), got a tax id number online as well (irs.gov).
but the most important thing is that you talk to a lawyer, look for one that specializes in real estate and/or business law. In 20 minutes on the phone with one, I learned more than I EVER could on my own, and it was free (surprisingly!). he also reffered me to a CPA for tax advise.
Thank you. This points me in the right direction. By the way pip, how many propertys do you own?