hello everybody. This is my first time on this website and I think I would be spending a lot of time here. I have a quick question. WHich one is better and whats the diff, forming an LLC or incorporation.
Okay maybe I should shed a little light on what I want to do. Well eventually I would get into the buy and hold and rent stage of rei but for now I would start offdoing a few wholesaling and gradually build capital. So should I go for the llc or inc… or do I need not worry about that yet?
i wouldnt go spending money on setting up a corp or LLC until after i’ve made money in RE.
infact, thats what i’ve done. i sold 4 homes salary before spent any money on entites.
if you’re flipping properties i believe i heard S corps being recommended on this board.
i personally have a C corp with a pension plan for the employees for flipping. I expense out the profits, the rest goes towards pension contributions. Flipping isnt my main style so for the rest i’m setting up an LLC.
first do a deal. then worry about entities.
wow that was fast. Thanks for your reply.
As you can tell. am a newbie, but where should I start. I feel completely overwhelmed. I have been putting getting into the business off for the past year or two.I just dont know where or how to start. I’ve read a couple of books on flipping and I can feel like I have enough info on that but still I cant seem to get my feet moving. any suggestions?
depends on what sort of flipping you want to do.
for pre-construction flipping, read this
if you want to wholesale or rehab, then read the forums on those topics.
whats your current situation. do you have time to spend on RE or are you more
of a passive investor?
well I work a full time job and also part time at staples. I am 23 and would like to go back and finish college sometime b4 the end of this century. I do (have to now) time to get fully or at least partially involved in rei , I just dont know where to start at all. Like I said, am full (atleast I think) of info on the business but my am not that sure were to start. Also the fact that my credit score is nothing to write home about kinda dampens my confidence level. Oh trust me… if I could find the right direction to go…oh …I will make time.
You have only used two or three excuses for over a year. Get off the couch and do a deal. Here are some more excuses if you are just too lazy to make up some of your own:
jmoreb, I would talk to a real estate attorney. Find one that understands investing in real estate, not the kind that does primary residents. Tell him what you are trying to do, and let him advise you on entities. Next I would try to understand what your true status is. How much cash you have or have access to. I have a lot of my companies stock. It is actually a French company and is not easily transferable. But I use it to do real estate deals when they want me to have enough cash for 6 months PITI to approve the mortgage, all they want to do is know that it is there and in my name. You say your credit score is nothing to write home about. Talk to a mortgage broker that does investor deals. He will tell you if you are dead in the water or not. You may really be surprised at what you can do with that score.
thank you all for all the advice. For starters …the couch thing … okay am off it… I guess I should start hitting the newspapers and also start farming some areas or is there something else I need to do first?
1. Decide why you are going to do it (aching need)
2. Decide what you are going to do (one specific rei)
3. Decide how you are going to do it
4. Do it