I'm a new REI and would like some advice (or at least hear how everyone else is doing it), on what type of business structure people are using for their real estate investing. Let me say my plan is to focus on apartment buildings (5+ units) , if that info has any bearing on the decision.
For those concerned about the legality of giving such advice, I will in NO WAY take your "experiences" as "legal advice". I want to understand what people are doing and perhaps why so I can decide which route I may go. I've recently moved to my area (Huntersville, NC) and am in the process of interviewing some accountants to become my new personal (and future business) accountant. I will make my decision after listening to various sources and won't hold anyone responsible for their suggestions; so please don't hold back.
I was advised by a business coach a few years ago that corporations were the best way to go because of tax advantages and liability protection, but that discussion was focused on buying a business and NOT on real estate investing. So I don't know if the same advice holds for the real estate investing business. My goal is buy & hold long term my niche of apartment buildings with an eye on the North & South Carolina markets.
Thanks in advance for your help/discussion.
You want to speak with a real estate CPA who can advise on the best legal entity as well as give you tax strategies.
I can PM you a referral if you want.
@George Skelton you are going to find that many people will recommend talking to a CPA or Lawyer about this, and it is not because we don't want to help, but more that each scenario is different based upon strategy, local and state laws, just to name a few.
I experience the same road blocks and trying to figure it all out and what it comes down to is there is no set blueprint to doing REI; once you embrace this logic the sooner you can more on to becoming wealthy. Spend the money and get yourself a good CPA that also invest in real estate - preferably one in your local market. They will help guide you and point you to a good real estate lawyer who can set it up properly - don't try and DIY it like I did because I used my personal name that would void the asset protection you are seeking.
I know that this didn't help you much, but as Account Closed indicated a CPA is your best start at getting to where you want to go. Best of luck and hope you have a successful future!
Welcome to BP George! First off, I am in no way an expert on this type of thing but am always trying to learn and self educate on this topic as REI is truly a business venture and not something one does without much of a business plan. With that said, I strongly recommend reading "Mastering the Rockefeller Habits". It is hands down the best thing I've read on structuring your business plans and they offer great resources throughout the book such as the "Gazelles Growth Institute" which contains lots of awesome free material on their website.
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