Chicken and the Egg...Setting up LLC and Property Buy

[Luis Sanchez Rodriguez]

Hey folks,

I can use some quick guidance...

I understand the importance of setting up an LLC and having your properties under one.

My question is: Which comes first?
Do I buy my property first then put it under an LLC? Or do I setup and LLC first then buy my property?

Thank you in advance for the help.

[Will Fraser]

Hi @Luis Sanchez Rodriguez, I find that perhaps the best way to approach it is like this:

• If you will purchase the first properties using a conventional loan, don't worry with the LLC yet. The loans will be in your personal name, so the LLC won't be relevant.
• If you will purchase them using cash or a commercial loan, go ahead and get that LLC set up and learn how to use it properly. You'll want the protection and simplification that the business gives you, so you might as well get started with it in place.