I have a few questions about what my next move should be so here's what I have going right now.
I did my first flip last year, did all work myself and plan on doing for the next few houses. The flip was a success and sold in a month. I have a career job so I have separate income as well. I just bought my second house a few months ago and now live in it with 2 buddies that pay me rent which pays the mortgage, so all is well. My original plan was to just fix up this house and resell it but my realtor is a family friend that was able to get me a very good deal on it with minimal work that needs to be done, in an area that is going up in value. I'm getting married next year so I plan on moving in with my fiancé at her place before that time. So I decided to just hang on to that house since I'm not technically paying the mortgage, slowly renovate it and then sell it in a year or two. My goal is to keep flipping houses and start a business while sitting on that property but I'm unclear how to go about it.
Do I need to get an LLC for the business and deed that property to the business so I can have my name clear and continue flipping or what's the best strategy for me right now? I have 3k in savings and I'm also paying off any bills I have meanwhile. Thanks
If you are buying these homes all cash then you could buy them in an LLC ( but not necessary ). If your using bank financing to buy these homes they will have to be in your name as banks wont make loans to your LLC.
Hi Scott, A significant advantage of the LLC is the limited liability protection it provides for landlord & other situations in case the completely unexpected happens (accidents or injuries causing medical bills, etc.) Although buddies may not sue, insurance companies or collectors or others may see things differently. Talking to an advisor is the best route. Here's some info to get started on how to form an LLC or other type of business entity (http://ow.ly/BfQtP) and we'd be happy to help form your company or answer any questions you may have about the process (http://ow.ly/BfON0).
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