Are LLC, business name, website, and cell important at the start?

Question

Hey everyone. I'm a brand spanking new investor, but I have no idea of where to start. Like many people, I have little (read - almost no) funds, so I have to figure out where to spend money at the beginning. I've read in quite a few places that it's important to have things like an LLC, website, a phone number devoted to your real estate ventures, and business cards to bridge the credibility gap. However, I'm wondering - what are the absolute most important items you have to have to start your business?

Scott W. · Answer

if landlording just 1 or 2 properties, get a personal umbrella insurance policy; much cheaper than doing an LLC. I know others may insist on an LLC but the cost are too much after considering your downpayment, renovations, maintenance/vacancy/eviction/emergency fund costs. as we all know, running a home is expensive.

Michelle Cobbs · Answer

Hi Everyone,

I am new to BG I have been a member for a month or so I have been reading post and learning all I can from everyone on REI, more specifically I am interesting in wholesaling to start. I too have many questions, one is do I need to form a LLC if I am starting with wholesaling I have started the process to form one is it necessary.

Michelle

Jordan James · Answer

Thanks for the responses. For the time being, I'm looking at wholesaling for the first year or two to get my feet wet, and then moving into rentals and/or buying and holding. Business cards are the least expensive and most important items to get, pretty much for any business venture. A devoted number is right up there. I just don't want to appear unprofessional or not have "enough" to be successful at the beginning...

J Scott · Answer

As Charles said, it really depends on your goals and plan.  If you plan to actually have to talk to sellers, then a phone number is obviously important.  A business entity should wait until you at least have a property in the pipeline to buy.  And a website is important if you plan to attract sellers via website, obviously...

Account Closed · Answer

Some of it depends on your real estate goals.  Are you going to be flipping, wholesaling, buying to hold or what?

If you are looking at rental properties, I would wait on the LLC until you are close to closing on a deal.  It is possible that you don't need it even with your first investment purchase.  Depends on what you  own personally and what your needs are.

A webpage could be very important if you are wholesaling or flipping, but less important if you are a landlord.