I have been trying to get into the action phase of wholesaling. I have been searching for addresses, driving for dollars, and gathering as much information as I can. I am just wondering about some of the (very) basics to start.
It seems like forming an LLC in the beginning is not necessary (from reading other posts). If that is the case, do I just market in my personal name? Do I pick a business name and market under that without registering it with the state? I haven't ordered business cards because of the business name issue. I would also like to put up a landing webpage but that is also determined on the need for a business name/LLC.
Do I have to have a business bank account to start (which would require a business name) or can I just use my personal account for now?
Are there contracts available on Bigger Pockets or other places that I can use for the buyer, seller, reassignment….without having to spend several 100’s of dollars to have an attorney review them? I know there are some in the forms section but want to make sure I am using ones that will not get me into a bind (making sure I have the out clauses……).
Should I use my personal email address or set up another one just for doing RE.
So many questions………I appreciate any answers that you can give. I have some other questions but will start a new thread for them. Thanks.
Whew...OK...let's tackle all these questions.
First..it is ALWAYS a good idea to review everything with an attorney. Everyone here is giving you their opinion based on experience. Only an attorney is qualified to speak about the law.
As for the LLC - not required at first, but here is what you lose. 1) The LLC protects your assets in the event of a lawsuit and (2) there can be some great tax advantages. I think it is worth the investment of time and money if you can swing it.
Your brand name can be the same as your corporate name (in which case you should start with the brand and make the corporate name the brand name). The brand should be something that customers can easily understand and relate to. Your brand should be on ALL of your marketing.
If you do not set up a corp initially, then you could just set up a separate personal bank account. Once you have your corp set up, then open a business bank account. Remember to never co-mingle personal and corporate funds/bills. It could provide a basis to pierce your corporate veil.
For wholesaling you need a simple Purchase & Sales Agreement. Make sure it is Assignable. It just needs to say "This Agreement is Assignable by the Buyer".
You will also need a simple Assignment of Contract.
I have never reviewed the contracts available on BP so I have no opinion.
As for email addresses - don't get too hung up on the small stuff. It is always more professional to have an address that matches your brand, but at first, any email is fine.
What I tell my clients is: let's create the problem first - in other words, let's start making money, they we'll sweat the small stuff.
I hope that helps. Good luck to you!
Thanks for your reply. I cannot believe no one else posted on this thread. I thought this would help a lot of new people like me. Thanks again.
You're welcome. I hope that helps.
Listen, if you go to my blog listed at the end of my posts you'll see a lot of articles about investing. I am also published on www.ezinearticles.com. Send me an email at [email protected] and I'll send you an ebook for free that I sell. It will help clear up a lot of your questions.
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