Need insight on LLC

Hi Everyone,

My wife and I were discussing sub 2 and L/O. We are new and haven’t done our first deal yet, but we are seriously hunting. We have done a lot of studying, reading and gathering of information on different techniques used in REI. Would we need to form an LLC before we do our first deal or when we have more experience and properties under our belt? We only plan to do the L/O and sub 2’s for now, only holding on to properties for a matter of a few years through rent-to-own. We are unsure if we should proceed “Unprotected” without the LLC because of legalities, is it necessary to form an LLC from the very beginning?

Thanks to any who can give us advise.
William and Tammy

Howdy Ellerby:

Buy some insurance to protect the property and some more insurance to protect stupid accidents that can happen to your tenants. An LLC is a lot of paperwork and cost a few grand if you do it all legal with attorneys and accountants and all that. After you get your feet wet and have a few hundred grand in equity or cash you may want to look at protecting it with an LLC.

You will get other opinions too that will tell you to get a LLC tonight on the internet for $200 from the Sec of State office. Still all the accounting mess but cheaper.

Whatever you decide LOL