Investor · Atlanta, GA · Member since 2017 · 3 posts · 1 vote
I am working on starting a wholesaling business and am planning on getting my license while also eventually having a flipping business and rental business. I need someone who can advise on how to properly structure this as I know different types of legal structures are good for different business types (wholesaling vs flip vs buy/hold).
Currently looking at either staying in Atlanta or possibly relocating to Florida. Under the network tab in BP, I see all trades except attorneys.
You would actually be able to get help on this from your CPA, as long as they are well versed in real estate and entity structuring. That being said, I do know an attorney that could help. Probably cost more $$ than going with your CPA though...and you're likely getting ahead of yourself if you're just starting on your journey into wholesaling. For now, you could just set up an LLC to wholesale through and worry about entity structuring later once you've gotten some traction.
Drop me a message though and I can provide the attorney's contact info!
The two keys are to create a separate LLC for your rental business and insure properly. The separate LLC makes it clear you intend to hold onto the properties in your rental LLC so they are taxed appropriately. For added asset protection, add a nominal partner, e.g. 5% to your spouse or kid. Of course, you have to have a bank account and keep the finances separate from your other efforts.
Second key is to insure properly. Liability policy 2x or so of your net worth is a great way to ensure you're nearly insulated from disaster.
A second LLC for your wholesale/flips isn't required, but it will help as you scale up, partner up, and leverage.