Going to be starting with some Whole Sale deals here in the coming weeks. After completing some deals, and maybe 8-12 months down the road, I'll be getting into Fix & Flip. The goal is to then Buy and Hold.
Question, when would be the best time to set up an LLC or Scorp? Right now? Or after I find my first whole sale deal and utilize the "and or assigns" to then go set up my company? Or is it better to wait until I'm fixing and flipping?
Anyone have some great recommendations for asset protection/investor lawyers/financial advisor in the Phoenix area? There are tons on them.. but looking for a recommendation.
@Ross V. I'd suggest opening the LLC(asset protection) once you acquire an asset not before.
While being an operator - wholesaling or fix and flipping - the benefits of an entity are pretty small. If getting up into some serious volume, an s-corp tax designation can help with some SE tax relief. That's if you find yourself making serious money.
Jack and Jill homeowner probably want to deal with you personally, not some commercial entity. They will probably flinch if a co is buying their house.
I have LLCs for my long-term commercial 5+ unit apt building holds only. I'd get out there and do some deals before I worried about getting sophisticated. Consult competent legal and tax advice always @Ross V.
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@Account Closed Excellent, thank you for the tips and quick responses. I think it's a good idea to simply get started, then when it makes sense start getting sophisticated.
You don't need one immediately. Once you get over I'd say 20 deals a year I'd look into that.
Don't get slowed down by all the technical stuff. Just do your first deals in your name and get to work. That's stuff slowed me down as well. After making some cash go consult a real estate lawyer.
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