I really want to work with a lawyer right now in setting up the structure of my business plus assist me with deals when I have questions however I just cannot afford legal fees right now. I have heard many people talk about pre paid legal. Does anyone have experience with this and know if it would be worth trying or should I suck it up and talk to a lawyer directly?
if you're just starting out, i don't think i would worry too much about a business structure. i know a lot of people are going to disagree. my feelings are that if your cash is that tight, and you haven't really started investing yet, then put that bit of cash into your first deal.
i don't plan on setting up a legal structure for my business until my 4th rehab. i'll be sitting on a decent amount of cash by then, since i'm re-investing all my profits (for now). by then, when you should be able to afford it, i would find a good RE lawyer (not just any general practice guy), and make him a part of the team. you'll need good legal advice from time to time. when you finally find some, you need to keep that guy around.
either way, the pre-paid legal can be a good deal, depending on your situation. but, if you're running a business, i would find 1 guy that you trust, that knows your business.
I understand what you are saying. Does make sense, however I am about to purchase rentals as well. I am on my first rehab right now and will be making an offer on another one next week, plus getting a few rentals soon. This is why I was so concerned about getting a LLC set up.
I defintely agree that after I have made some good cash I can afford a good lawyer to work with on everything. Just wondering if I will be able to wait till that happens.
I've never seen anything to make me think prepaid legal would be worth it. I've been an active investor for almost 30 years and I've seldom needed an attorney, except to foreclose on some (seller financed) first mortgages, and I don't think ppd would have handled thoses.
IIRC Clark Howard or one of the other "consumer advocate" sites had a pretty good analysis about ppd legal on it. I think it took my position.
For now don't worry about "strucuring" your business. Just worry about creating some business, and profits.
honestly, i worry more about getting a good accountant than about my initial business entities. i figure a good re cpa will probably be able to advise me on what kind of entities to use. seems to me like my biggest concern for using these entities is to protect more of my investment (from taxes and lawyers) -hopefully right up my cpa's alley. i would find a good cpa muy pronto!
You may want to do a Google search of pre-paid legal before using them, there is quite a bit of informaion on them. Some people really like them while others are not so happy.
For the money you cant beat it. Plus, if your vision is really big, you will be investing outside of your state. PPL has already networked thousands of real estate attorneys in every state licensed to work with you. I would hate to be on the clock everytime I talked to my lawyers. Even if you chose not to use them exclusively, its worth it to get all the prepaid things they cover done with them and if you want to use somebody on a per fee basis in conjunction, you're more than welcome to.