How should I start in Real Estate?

Question

These are my questions:

1. Should I create a company (LLC) or not? So I can protect (financially) myself and family from a law sue.

2. What do I need to do for start in RE, besides get educated?

3. Can I start RE with a personal loan even though I cant to create a company (LLC)?

Norma E. Vega Sanchez · Answer

@Evan Polaski thank for your feedback!!! I’m looking for start with a duplex. Live in on side and rent the other one.

Kai Kopsch · Answer

@Norma E. Vega Sanchez Welcome to BiggerPockets! You have found the right place to learn tones of free content here. Before opening an LLC you create a game plan what direction you're like to going in REI field. Nope, most lenders don't give loans to new RE Investments companies without a track record / collateral

Nick Rutkowski · Answer

Norma, what is your strategy? Are you flipping, buy and holds, commercial? This can help us identify which entity you should form. Beside getting educated, you need to raise capital. The easiest way to do that is find a good deal and a someone with a lot of money. How you find that person is up to you. What kind of property are you trying to buy with a personal loan?

Greg Morris · Answer

Hold off until Jun to see what is happening. Many will be past due on house payments.  You will be able to in the near future to take over house payments, be sure to do a quick claim on each house and work out the numbers. Check to see what rents are going for in the area.  Create  a cash flow using other people's debt.

Evan Polaski · Answer

@Norma E. Vega Sanchez I agree with Greg in general over the next couple months, you very well could see prices drop, but also are unlikely to see any substantial rise.

You will need capital and a deal. The LLC is an option but I would not let that slow you down.  Additionally, if you are going to finance the property you will have a personal guarantee either way, and often taking title and financing in your name versus LLC can save you on interest expense.

If you need to raise money or have a partner, then an LLC becomes much more important, if you have your own cash, it is optional.

As mentioned, the type of product you are looking at can help us provide you with more assistance.  Single family flip, single family rental, 20 unit apartment?

Evan Polaski · Answer

@Norma E. Vega Sanchez in general the more units you have, the better the numbers start to look.  A duplex is great, my wife and I did that for about a year, but looking back, I wish I had gone with a solid 4 family.  The cost is not that much more, at least in my area, and you then have 3 tenants paying rent, versus one.

Just a thought.  Good luck!  Other than the 2 kids I have now, I miss living in the duplex: no lawn care, no house projects since we renovated before moving in, and I got to live for free.

Norma E. Vega Sanchez · Answer

@Kai Kopsch thanks for the feedback!

Norma E. Vega Sanchez · Answer

@Greg Morris you must explain this to me!!! Thanks for such great idea!

Norma E. Vega Sanchez · Answer

@Nick Rutkowski My desire is to start with a duplex. Live in on side and rent the other side. I’m considering to get a personal loan.

How should I start in Real Estate?

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