Hello all. I am sure it's out there somewhere on BP, but looking on the net there are so many conflicting Pros & Cons. Should I bother creating an LLC before I even make my first deal/purchase? Thanks to all!
I probably would not. Are you getting financing? Financing may be more difficult with a LLC. Worried about protection? Learn your laws, stick to them, and buy insurance.
@christine no, just have good insurance.
I wouldn't bother if its your only property. Get a good umbrella insurance policy would probably be your best bet
There's a lot of conflicting advice out there because the answer really depends on your situation. If you have a lot of assets, then an LLC will give you an added level of protection. If you don't, then maybe an LLC isn't necessary, especially if you are buying your first property. Maybe you should instead look into an umbrella policy.
If you want to get better financing terms, buy the properties in your name. Once you have more equity/assets, an LLC might make more sense if you are concerned about asset protection. Either way, you should consult with a lawyer to decide which type of business entity makes the most sense for the type of real estate investing that you are doing.
Thank you everyone! Makes total sense not to bother right now if I will only have a couple to begin. Let's hope for long term future growth then go LLC!! Many thanks again!
@Christine Johanns I you haven't listened to it already check out BP Podcast 109. The guest spoke about LLCs, insurance and many other methods of asset protection in that episode. Good luck on your journey!
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