Rental Property Investor · Las Vegas, NV · Member since 2018 · 9 posts · 6 votes
Hi everyone, My name is Arreana I am in Las Vegas
I have been studying, reading and researching on doing wholesales. I have driven for dollars and found a few properties and, will be reaching out to the owners. My question is in your experience was it necessary to already have an LLC when you closed your first deal? Or did you not get it until after several deals? Also when using click2mail do you send postcards? Thanks in advance for any responses, I am very excited to journey into this new path.
I have been studying, reading and researching on doing wholesales. I have driven for dollars and found a few properties and, will be reaching out to the owners. My question is in your experience was it necessary to already have an LLC when you closed your first deal? Or did you not get it until after several deals? Also when using click2mail do you send postcards? Thanks in advance for any responses, I am very excited to journey into this new path.
I doubt you need an LLC.
However, make sure you are in compliance with real estate agency laws or you could inadvertently be practicing real estate without a license and get yourself into trouble. I don't know the particular laws for Nevada but a local real estate attorney would.
Rental Property Investor · Las Vegas, NV · Member since 2018 · 9 posts · 6 votes
8y
@Account Closed, thank you for replying. I have looked over the guidelines to stay within the legal parameters to make sure I do not act as an agent. I wasn't sure if active wholesalers had LLC's prior to their deals, but I'd also assume not a necessity.
Flipper/Rehabber · El Paso, TX · Member since 2015 · 379 posts · 201 votes
8y
@Arreana Marie An LLC is not necessary to have but you will want to get one soon for tax purposes once you start making money. Or at least be ready to pay taxes on any money made. When using click2mail you can send postcards or yellow letters. The best way to find out which one works best is by trial an error. I will give you some advice. Vegas is the worst market for direct mail and at this point that would be a waist of money. I will reach out to you personally so we can connect.
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
8y
@Arreana Marie Hello and welcome to BP! I don't think you need an LLC for your wholesaling venture, heres my take on why. LLC's are easily pierced if the owner co-mingles funds and does not keep diligent records. Make sure that you follow the local laws for the specific type of wholesaling that you choose to do, that may provide more protection for you than an LLC that is inadvertently non-compliant.
I have been studying, reading and researching on doing wholesales. I have driven for dollars and found a few properties and, will be reaching out to the owners. My question is in your experience was it necessary to already have an LLC when you closed your first deal? Or did you not get it until after several deals? Also when using click2mail do you send postcards? Thanks in advance for any responses, I am very excited to journey into this new path.
Good to meet you...
In the beginning and unless or until you have massive assets to protect I wouldn't invest the cost in a LLC or S Corp. One done correctly by an Attorney will run 2500 to 5000. Also dont do one over the net.. Those are fine after you have experience having interest in a few.
Also you will want to speak to an Accountant first.. They will most likely tell you LLCs are great for passive investing and S-Corp for dealer status activity and wholesaling is dealer status activity.
Also you may be using the word wholesaling wrong and meant to say assigning. Wholesaling is taking title and selling for less than value where assigning is selling the contract. The advise about civil code violations and assigning is a real concern and one that your attorney can help you understand the does and donts.
A very important step to take prior to ownership is to have a statement of identity ran on yourself to confirm in advance you have salable title and no personal liens that will attach to a real piece of property. The SOI can be done for 250 by most title companies. It takes a day or two.