MUCH OF THE LITATURE RECOMENDS STARTING AN LLC AND OTHERS DO NOT. WHAT IS THE RIGHT COURSE TO TAKE BEFORE JUMPING IN. :
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Howdy Longhaul:
There really is no right and wrong way to invest. LLC’s and Corps are good for some asset protection but are not perfect. Perhaps to keep property separate from one another is good in case a big law suite is won they can only come after that property and perhaps not all. If fraud is found watch out because the sky is the limit on how the courts can attach about anything for the winners.
I feel too much attention is put on all this. The main thing is to get started with something. Once you know that REI is right for you then you can form all sorts of shields and LLC and trusts to play hide and protect. If you have nothing to hide or protect then why spend thousands or even hundreds and then decide rehabbing or flipping or land-lording is not for you.
I never want to file personal BK again so I formed a Corp just in case the worst happens or I mess up again. It happens to even the best builders and investors. I still must sign personally on notes and you will too in order to get loans to do deals. Sub2 investing is one way to avoid this and owner financing using an LLC or partnership or other forms.
The decision is yours in the end. Learn all you can here and other forums and then decide how and when to invest, but get started today with a deal.
LOL
See my article at http://www.reiclub.com/articles/choice-of-entity for some helpful tips. A helpful post (among others) can be found at http://www.reiclub.com/forums/index.php?board=39;action=display;threadid=2559.
John Hyre