Business Structure advice?

Question

I am getting conflicting advice about whether to form an LLC, S, or to be mobile hom edealer as an individual.  Any advice, particularly in CA?

Rachel H. · Answer

Alot of people have questions in the beginning about business structure - the most important thing is to just get the 1st Lonnie deal done and over it. After you complete your first Lonnie deal, you'll find out if you want to continue in the business or not. I've known  people who have done one Lonnie deal and didn't really like the business - they went back into single family homes or rehabbing. Hope that helps!

Rachel H. · Answer

Glad to help, Scott! I have to drive 45 minutes out of my area for my deals, it's alot of driving but the deals are worth it ;) I've learned sometimes I just gotta do what works. Good luck with things!

Scott Merritt · Answer

Thank you MH Gurl, it does.  I have had to violate Lonnie rules in terms of age of MH to get numbers right in CA.  My gut is going older on homes makes more sense than moving up on price, but I'll be testing both strategies over time.  I look forward to communicating with you more when I have a few more deals under my belt and can speak more intelligently.  Also have had to violate the rule of sticking close to home, since I live in a high cost of living area where even the owners of 30 year old 10X50s think they should get $10,000.  So I am driving an hour each way, which I know will be cumbersome.

Scott Merritt · Answer

Thank you for the response, Richard.  Lonnie deals (buy cheap for cash, sell for profit and finance) initially, may buy pads in the future.  No interest in landlording in mobile homes at this point.  Primary concern is asset protection, although I perhaps naively don't anticipate that my exposure will be onerous if I am holding for 1 to 60 days and have no tenants.  Also looking to do SFHs in Las Vegas, your town, although perhaps separate entity.  But that's a separate conversation.

Richard Warren · Answer

There is no way to properly answer that question without knowing what you are attempting to do.  Are you looking to hold rentals, flip, wholesale?

:cool:

Business Structure advice?

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