When would you incorporate?

General Real Estate Investing
1

I was just combing this site and i would have to say that being brand new with no prior REI experience and not having my first deal under my belt i have learned so much, i would like to say that the veterans on this website are very helpful and i will be here for a long time. My question is how many deals would you do before you incorporate?

                                                           THE NEW KID
2

Howdy Newkid:

A lot of investirs are using the new LLC format for investing. In Texas you can form it online with the Sec of State for $200. To hide ownership you can use a trust to actually put the property in that name. You may want to wait until you earn some money to justify the expense but some gurus suggest doing it the very first thing. I would suggest read some more on the subject until you feel comfortable on the subject and then decide what is best for you.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

3

Hi ted,

Thanks alot for that information, my next question is how do you deal with a situation that the owner of the property on file doesn’t know that they own the property?

                                            THE NEW KID
4

Thats is a bit unusual. The only time I have dealt with that is with a death where there were many heirs and no will. What are the circumstances with your deal? I gave up on the one I was working because the heirs got greedy and drove up the cost plus there were just too many. 5 years later I noticed the house repaired but still do not know if it changed hands.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

5

Thanks Ted,

       My case is a little bit different, i found an abandonded property and went to the court house and found the owner. I called the owner and the wife said that her husband doesn't own any property. What do i do now?

                                                THE NEW KID
6

Howdy New Kid:

You may have contacted the wrong person. If it a common name? See what other onfo you can get about the owner, address, middle name, ss #. Some of the info may be found at the court house on deeds, judgements, tax records, loan documents etc. Check with the City, utility company etc too, some give out info about their customers. Ask the neighbors if they know the whereabouts of the owner and check for other relatives. You almost have to be a detective sometimes. Hope some of this helps.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

7

Thanks Ted,
That will help alot.

8

Perhaps the wife said the husband doesn’t own any property because he never told her about it…

9

Hey Dixie,
That’s a good point!