Hello all, I am brand spank’n new to the real estate investment arena. I did a search on this site for LLC but found nothing. So here is my question. Are there any benifits to forming an LLC? All the reading I do never addresses the issue and I am at the point where I need to decide. I am in a good position, my credit score in around 700 and have $45,000 liqued. We are looking to do 4-6 homes our first year and growing from there. We intend on becoming private investors ourselves when the time comes. Another thing, I just got laid off my job and am going to do this for broke. The problem with that is I cannot provide 2 years income now that I lost my job. What to do? Thank you for any input, I sure can use it.
shabian,
Look in the “Asset Protection, Legal and Contract Issues, Income Taxes, 1031 Exchanges” area of this forum. There is tons of information about forming LLCs to protect your assets. The conventional wisdom is that you don’t necessarily need them for your first few properties but as you obtain more and more, you may need to form one. We are looking into it now…we have some renatal prooperties but have a beautiful new private residence of our own with quite a bit of equity in it already – we want to make sure it’s protected.
Keith
Greatly appreciated, Thank you.