Does one have to use an entity or land trust for first deal? Do i run the risk of dealer status based on one deal? I won’t be on record when just assigning the contract.
You don’t need either for your first deal. If you are wholesaling, you can even just use your own name–no big deal. If you are assigning the contract, you will not be on record for taking any title so don’t worry about. If you use your personal name, you’ll just be paying taxes as your personal name. The entity used for the wholesale will allow you to pay taxes as a corporation/LLC or whatever but for your first few deals, keep it simple–use your name, get the deal done…get paid…re-invest into marketing for your next deal!
Focus on getting the deal and closing it. Many gurus scare new investors out there with allthe stuff they are supposed to know.
However, having a 1000 entities won’t do any good if you have no properties to fill them.
Start doing deals and then work on the entities when you have a few under your belt. One thing you want to do is split up flipping and long term portfolio stuff in different entities for tax purposes.