Wholesaling LLC

[David Schneider]

Hi BP,

I'm working at developing a marketing profile for a wholesaling business in the Tulsa, Oklahoma area. (keyword rich. =D)

Is it absolutely necessary to have your LLC created prior to doing deals? Is it even strongly recommended?
I know I need to set up a trust and an LLC as my business shelter, but right now it doesn't make sense to spend that kind of cash before I have actually anything to protect.

I'm committed to the long run investing, so I know I will need to do it. But can I wait til I have my first profit?

[Ned Carey]

Originally posted by David Schneider:

Is it absolutely necessary to have your LLC created prior to doing deals? Is it even strongly recommended?
I know I need to set up a trust and an LLC as my business shelter, but right now it doesn't make sense to spend that kind of cash before I have actually anything to protect.

For wholesaling an LLC is not as important becuase your trip and fall type liability is low. It is a matter of risk tolerance. There is risk in owning real estate and doing real estate transactions. An LLC can help limit that risk but not completely. If you have little assets to protect an LLC is less important.

If you are a buy and hold investor your risk profile as a property owner goes up and having an LLC becomes more important.