Do you need an LLC before or after your first property.

[Kevon Reid]

As a newbie investor interested in buy and hold properties. Should I get a LLC before I get my first property? If no, when or what is the threshold when a LLC is needed?

[Walter Schick]

Hi Kevon, what Allen said is true just keep your nose down and get some good rentals (1+% rule and around colleges,military bases and hospitals) and above all else take care of your tenants (very very important). Initially if you self manage like I do make little upgrades to your properties after tenants leave . I've been in the business 19 yrs and my wife and I have not had an LLC until we were told by our CPA that we were now accredited investors. Hell we didn't know, we didn't feel it(any richer) cause we just kept plugging away. We made the decision to get an LLC then and now we are more protected. We haven't needed it because we follow the golden rule and keep our nose down & keep grinding. We also don't tell people what we have (Lotta haters out there). This is a long term play and you don't come up for air until 15-20 years in the game and start paying off the properties. That's when it starts feeling good and you know it was all worth it. Ahhh mailbox money is why it's worth it. One final tip that works for us is look around at what other landlords are doing to their properties and make yours a little better and then put your property up for rent a little cheaper initially . You then treat the tenants like gold and they won't mind paying more when their lease is up and they end up staying long term which is what you want. It's cheaper that way. Keep your eyes on the prize...mailbox money. Good luck & keep grinding. You can do this Kevon.

Walt Schick

Landlord from San Antonio,Tx