There are at least a thousand posts on this website about them you could search. You should do what you feel comfortable with. My opinion is someone with a low net worth and good morals can take it in their personal name without issue and most banks require it. It's what I did when I started. But you should do what helps you sleep at night.
I'm a invester / business owner in pontiac. I would like to hear about your purchase. I would suggest setting up an LLC. But you can transfer into the LLC after the purchase if timing is not working.
I prefer to have 1 LLC per property and a management LLC ( that I also own) recive all the rents ( and lease to the tenants) from each LLC. To do this you will also need a management agreement between your property LLC and your management LLC.
I would not do this until you have more then 3 properties or so.
Reach out I would be happy to meet with you. My office is in pontiac.
Clarkston Window and door
151 cesar e Chavez
Pontiac, MI 48342
Michael, it depends upon a lot of factors.
For people involved with REI, it depends upon what you want to do with the business as there are different tax rules based on type of entity.
For holding rentals, I generally recommend an LLC if you are setting up an entity at all.
For flipping and development, I generally recommend an S corp.
For wholesaling, my recommendation would depend more upon your specific business.
I went ahead and did a quick search of the topic of whether you should create a company or not. Feel free to take a look at the posts and ask a follow-up question if you feel like they are still unanswered.
Thank you all for your feedback! Very eye opening. The seller gave me some feedback on what he does as well setting up an LLC for only $25/year, so I’ll follow up with him regarding how that’s possible. I also think it may be a good investment for myself to at least speak with an attorney for an hour to get their take on the subject. I’ll follow up in about a week if there are any updates.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing