Establish a LLC Expectation

13 Replies

Hello BP, when establish a LLC with the intention to create series LLC in the future and possibly using Land Trust to hide the ownership, who are the people that i must hire full-time or part-time? How do i manage and what should i except when doing this?

I wouldn't worry so much about all the 'sophisticated' strategies @Dante Goh .  Worry  about hiring people and managing all these businesses and trusts after you acquire some assets.  Go get you some income property!

Hello @Dante Goh

I agree with @Steve Vaughan . Focus on getting the properties first. Once you are about to close on the property/properties you can speak with your broker about a recommendation for management, or they could recommend a mentor for getting you on your feet while working with your new property/properties.

You might seek out a property management company that has a buy and sell side. This could help you get some management advice while looking for the perfect property, and they can broker the deal for you!

Good luck!

Originally posted by @Peter Mckernan :

Hello @Dante Goh

I agree with @Steve Vaughan . Focus on getting the properties first. Once you are about to close on the property/properties you can speak with your broker about a recommendation for management, or they could recommend a mentor for getting you on your feet while working with your new property/properties.

You might seek out a property management company that has a buy and sell side. This could help you get some management advice while looking for the perfect property, and they can broker the deal for you!

Good luck!

 So let me get this straight. You are asking me to get a property 1st (Obviously i need to educate myself before any recklessness) and then find the people, not the other ways around? I think there is too much risk involved especially since i want to do creative financing such as sub2 and seller finance (Which you can tell it does not or little involvement with the bank unless in the case of sub2 where i need to inform the bank i'm going to take over the title, paid for the mortgage and then may ask for some recommendation).  

@Dante Goh ,

Yes - start networking and building your team...

...but if a great deal comes along, GRAB IT! It may even help you build your team faster when you have an actual deal to talk about instead of futures.

If you're going to set up a business entity do it sooner rather than later. The longer your entity exists the sooner it can start getting its own credit separate from yours, even though you may have to guarantee that credit when your entity is young. Lenders like to see a business in existence at least two years. Start the clock NOW!

Originally posted by @David Dachtera :

@Dante Goh,

Yes - start networking and building your team...

...but if a great deal comes along, GRAB IT! It may even help you build your team faster when you have an actual deal to talk about instead of futures.

If you're going to set up a business entity do it sooner rather than later. The longer your entity exists the sooner it can start getting its own credit separate from yours, even though you may have to guarantee that credit when your entity is young. Lenders like to see a business in existence at least two years. Start the clock NOW!

 Now you are speaking my language David. Yes i believe building relationship and trust with a team is more important then just get out to find property especially since i wanted to establish a Land Trust, Business Entity and find team member who have me in their best interest. But yeah if a great deal come, i will grab it. If only i know a great deal when i see it, still new to this investment lol

Oh but regarding the LLC, who must i hire & can it be part-time?

Don't hire any one until you need them and have the cash flow to pay them.

That said, a key team member will be an attorney who understands business entity structures for asset protection against liabilities and also understands US taxes in regard to you and your business(es).

Originally posted by @David Dachtera :

Don't hire any one until you need them and have the cash flow to pay them.

That said, a key team member will be an attorney who understands business entity structures for asset protection against liabilities and also understands US taxes in regard to you and your business(es).

 So advice from attorney in business entity and "CPA" for the taxation right? When you said don't hire anyone, u mean until i get a property that have enough cash flow to pay them...part-time?

@Dante Goh Are you under the assumption that when you start an LLC you must hire someone? That's not how it works. You simply hire someone if there is a need for their services and you don't if there is not.

What kind of employee do you need for your LLC and why?

Originally posted by @Patricio P. :

@Dante Goh Are you under the assumption that when you start an LLC you must hire someone? That's not how it works. You simply hire someone if there is a need for their services and you don't if there is not.

What kind of employee do you need for your LLC and why?

Yes i'm under the assumption because i want to diversify my work. Such as book keeping & tax return are done by (Part-time?) CPA and lawyer (part-time?) for legal advice on the responsibilities running a LLC (as a separate entity).

@Dante Goh

Are you in the US?

What is your citizenship status, you may have a heck of a time trying to get in the business!

First, you need to learn real estate before trying to deal in real estate!

Next, you don't hire CPAs or Attorneys as an "employee" unless you're really loaded with money.

Next, you need to learn general business management, what to do and how to run your own company (which you probably don't need starting off). If you're calling professionals for every little detail, it's going to cost you before they get rid of you as a client. No one wants to sit there and hold you hand. 

After you learn the basics of real estate, then you network with others, you want to find your "team" and know who you can work with. For example, a Realtor to work with, a title company that understands the types of transactions you may have, an attorney to put up with you, a bookkeeper, a tax guy or CPA, need a fix it guy, contractor. It's better to know who you can go to when you need them than to find out you need someone and then have to find someone to work with. Just common sense, if I find a house that needs repairs I want to know who to call and about what they will charge.

Learning real estate, you'll know how to find a deal, how to value property, settlement costs, cost out repairs, title issues, without understanding this stuff you have no idea of what a "deal" is. 

Then you work on strategies based on the property you find. If you just know how to do one thing, you're trying to put a square peg in a round hole, every strategy doesn't fit every situation or even most situations unless you're just a cash buyer. Learn real estate and you'll understand all the strategies or learn them very quickly.

Good luck :)

Originally posted by @Dante Goh :
Originally posted by @Patricio Pace:

@Dante Goh Are you under the assumption that when you start an LLC you must hire someone? That's not how it works. You simply hire someone if there is a need for their services and you don't if there is not.

What kind of employee do you need for your LLC and why?

Yes i'm under the assumption because i want to diversify my work. Such as book keeping & tax return are done by (Part-time?) CPA and lawyer (part-time?) for legal advice on the responsibilities running a LLC (as a separate entity).

 Ok. I see where you're coming from now.

"Hiring" those professionals is usually a matter of paying for services rendered, unless you are planning to keep them on retainer.

"Hiring", as most readers here will interpret it, may mean putting someone on your payroll as compared to a professional on your team whom you pay when you need them to do something for you.

Originally posted by @David Dachtera :
Originally posted by @Dante Goh:
Originally posted by @Patricio Pace:

@Dante Goh Are you under the assumption that when you start an LLC you must hire someone? That's not how it works. You simply hire someone if there is a need for their services and you don't if there is not.

What kind of employee do you need for your LLC and why?

Yes i'm under the assumption because i want to diversify my work. Such as book keeping & tax return are done by (Part-time?) CPA and lawyer (part-time?) for legal advice on the responsibilities running a LLC (as a separate entity).

 Ok. I see where you're coming from now.

"Hiring" those professionals is usually a matter of paying for services rendered, unless you are planning to keep them on retainer.

"Hiring", as most readers here will interpret it, may mean putting someone on your payroll as compared to a professional on your team whom you pay when you need them to do something for you.

 Oh so that where the confusion come from. So instead of the word "hiring" what is the appropriate word to use in my case?

Originally posted by @Dante Goh :
So instead of the word "hiring" what is the appropriate word to use in my case?

Well, maybe "team up with", or "connected with", or "find" or "found", "added to my team", ... 

Language isn't my strong suit, really, but maybe those will give some ideas...