Hello BiggerPockets community,
I’m a relatively new member to this forum and REI. BiggerPockets seems like a fantastic source of knowledge and tools for my future investments. Just wanted to try and establish a step-by-step plan for myself going forward and figured what better people to ask!
First off I was wondering if I should/could form a LLC before actually purchasing my first investment property. The reason I ask is I’ve read the benefits of establishing a business checking account for the sole purpose of real estate investments.
Next applies to the same question, but if working with a partner. If I had a partner in mind can we form under the same LLC and business account checking account?
Also, I’ve heard of some great tax softwares such as quickbooks. I’m planning on using excel for the first few properties, but was wondering based of experience what you guys think is the best software.
Thanks in advance for any answers. I just want to build the most solid foundation as possible and try to start out on the right foot.
A few quick comments.
First, if you're first starting out, skip the LLC. I've been land lording close to 40 years and have yet to use an LLC for REI. I have them for other business I ran. Use insurance to limit liability and I would get acquainted with local insurance agents. Learn about landlord insurance, umbrella insurance and renters insurance.
As to checking accounts, a personal account would do, a joint one if you have a partner. I have run active businesses, and business checking is a lot more expensive. It's easier to move funds on line between personal accounts, and linked personal accounts between banks, fee free. As far as I know, not fee free between personal and business for accounts in different banks.
Quickbooks, which I use since 2002, works great, so does Excel. Both takes time to learn, but the quicker you get acclimated to QB, the better.
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