Updated almost 3 years ago on . Most recent reply
Create an LLC First or Buy Multifamily rental first?
Hello everyone Ive been in analyzation paralyzation for the past 2 years, I finally figured out what I want to start in which is multi family rental investing. Only thing is Im not sure where to take my first step. I have my RE license and have access to the MLS, but I have been reading alot about creating a new business in order to have access to a new business 50k loan. If I can try and get that to start I think it would be the best way to go in order for myself not to use my own money. My questions to everyone is before getting started should I go with a conventional loan or start up an LLC and work for my 50k loan to get a DSCR Loan and have my property under my LLC?
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I'd focus on buying a good deal, not the LLC or the financing. I can't imagine a bank or even the government will give a $50K loan to a new LLC. Otherwise, there would be people churning out LLCs to get loans that would never get paid back.
Early in my investing career I bought a program on building business credit hoping to use that to fund growth. While I was able to obtain some credit, it was never in any amount significant enough to be useful to accelerate my investing.