Getting an LLC before buying

[Eli Jackson]

Should I set up an LLC before purchasing any investment property?

[Charles Carillo]

@Eli Jackson

If purchasing a commercial property (including 5+ multifamily); the letter of intent is usually (it should be) assignable. In other words, you can put an offer in on a property, with your own name (or a LLC's) via a LOI and once both parties sign, you will have your attorney draw up the purchase and sale agreement AND setup a new LLC for this investment. At this point you have just assigned the executed LOI to a new LLC.

In a perfect world and how large syndication companies do it, you would have a LLC with nearly $0 assets that you just make offers from; but to start off, you can use your name or another LLC you have.

Ask your attorney for their advice prior to making any offers.