Structuring a business from the outset?
Nothing should hold a potential investor back from the first deal if the numbers make sense, resources are available, and they have a team they trust in place--I get that, and I am moving. But for those that are a little ways down the road, is there any advice on how they wish they would have structured themselves a little better at the outset?
For context: I am in RI and want to do a BRRRR investment in NC. I have the resources (private lending) and am connected to a fantastic team that offers world-class support to real estate investors at Five Pillars Realty in Fayetteville, NC led by @Shelby (Osborne) Johnson.
My specific questions:
1. Did you form an LLC? At the outset or later? Where was the LCC formed in relation to your property? State of the property? Does it matter?
2. Did you setup separate banking? Personal or in the name of your LLC? Any particular bank or account type?
3. Did you consult a CPA or RE attorney with your first deal? Were they local for you (in your state of residence or occupancy), or local to the property wherein you were investing? Does it matter?
4. Did you use any sort of finance software (like quickbooks et al) to keep track of everything for taxes?
This stuff seems likes in the weeds right now, but there have been a number of endeavors where if I had known enough to organize myself from the start, things would have been more efficiently later. I plan to do several of these very quickly once i get started, and think it makes sense to have a structure in place to make that work.
Appreciate any insights.