Updated almost 11 years ago on . Most recent reply
Your RE Investment Business
I am curious to know if it is typical or recommended for someone just starting out in real estate investing, let's say using wholesaling strategy, to create a business entity such as an LLC. Is there a need that early on? When is there a need in your opinion?
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An LLC is about asset protection. It isn't exactly needed when you first start out. You can buy one if you want but you can just as easily get a dba (doing business as) for about $20, and open a bank account that way. Especially using wholesaling though you never have any assets in your name, so really you just need a way to cash the assignment checks. I would recommend doing a few wholesale deals to decide if it is something you really want to do before you establish your LLC, since it will cost you about $300 (at least here in MO).