LLC, Insurance, & Networking
Hello Everyone,
Long time follower, first time posting, exciting stuff! I've been doing a lot of reading and researching on real estate investing and I'm ready to make my first deal. I'm planning to start with a flip and will continue to do that same strategy for my first 3-5 properties then want to grow my portfolio by holding single family residential homes. I've taken some of the initial steps in forming my crew (agents, lawyer, accounts, contractors) and wanted to get some insight on LLC's, insurance, and networking.
- LLC - I'm going to be investing for years to come and want to have my personal assets protected as well as all transactions to be done through a separate business account. To do this I wanted to form an LLC but wasn't sure the best time or method of doing so. Would it be prudent to do this online on my own or should I pay someone to do this for me. My main concern with doing it on my own is that I won't cover all the bases and leave myself exposed to unnecessary risk. Additionally, I'm not sure if there is a best time to do this, would it be wise to incorporate prior to my first property or should I wait until I have more of an operation running.
- Insurance - With my flips I plan to do most the work myself and contract out any bigger jobs outside my abilities or that require a permit. Since there will be people working on my property I wanted to see what kind of insurance I should carry to make sure I'm not liable in case someone were to be injured. I'm assuming this won't be an issue with the contractors but of the jobs that I'm doing myself I'll have friends and family helping who are going to be paid under the table in cash (unless there is a better/safer way to compensate these type of workers). So, I wanted to know what type of insurance I should have above and beyond regular property insurance so that I'm not stuck paying medical bills if someone does get hurt on the job.
- Networking - If anyone has any networking opportunities for newbies in the greater Seattle area, please share!
Thanks in advance for taking the time to read and response, I appreciate the help and look forward to your responses!
Tim