Updated almost 5 years ago on . Most recent reply
Newbie Question any help greatly appreciated.
I want to own rental properties and I was wondering if after a certain amount if it would be beneficial to create an LLC. I also was wondering what it means to build your "team" are these people employees, on a deal to deal basis, etc. Thank you in advance I look forward to hearing from you all.
Most Popular Reply
@Jordan Starks welcome to Bigger Pockets.
Whether to use an LLC or other entity is a complex decision with many variables. There have been many threads, blogs, podcasts etc here about the subject. A search may help.
Regarding a "Team" I don't like the word, especially when someone says "Power Team". It sounds like you are fresh out of a guru seminar. Yes all good investors have a "Team" but they generally don't call it that. They would never call it their "Power Team". It is simply your network of contacts and people you deal with regularly.
What people are referring to when they say you need one, can be employees, independent contractors, licensed professional etc. These people will come and go over time. You will have favorites you work with, and some you rarely use. Some will have a specialty you may need occasionally.
One person someone might tell you you need on your "team" is an attorney for example. I don't have an attorney, I have MANY attorneys: bulll dog litigator, transactional attorney, Title attorneys, Foreclosure attorney, bankruptcy attorney, landlord tenant attorney, collection attorney etc. Some of these I use regularly and some rarely. You don't need to have everyone lined up as a "team" before you start. You build this network over time as you need them. The bigger your network gets the easier it is to get a reference for someone new.
Good luck