Hello everyone! I have a question that I am eager to get some feedback/advice on. I am a beginner investor who is interested in doing lease option deals here in the south Florida market. My goal is to invest in buy and hold rental property under a corporation, but because I currently do not have the funding for initial startup ( incorporating, tax planning, bank accounts, attorney/cpa/book keeping costs etc..) I was wondering if it is a good or bad idea to start negotiating lease option deals without a corporation just as myself? I am hesitant to get out there and sign documents before I start my company. My thought was that I could generate some income while simultaneously getting everything started but I’m not sure if I should do it or not.. Does anyone have any advice/experience doing this by themselves? Should I wait to do a deal until I’m incorporated? Is there great risk if I don’t? I am very eager to start putting together deals so any advice is greatly appreciated. Thank you In advance to everyone who replies. I appreciate your help!
I'm also in south FL and have been doing lease options for 25 years. I have never incorporated because there isn't any need to do so. If you want to generate income safely and without the need for a corporation I suggest you use cooperative assignments. Done correctly, they are risk free and require no out-of-pocket capital, and can generate some quick, upfront cash without the legal entanglements of other types of real estate.
Also, take a look at the Florida Secretary of State website and look for info on Limited Liability Companies. They are a heck of a lot less expensive and complicated than a corporation, and you can create one yourself in about 10-15 minutes.
@Michael Carbonare Hi Michael! Thank you so much for the reply. It sounds like you have been doing this for quite some time, so I appreciate the experienced feedback. Apparently I posted about corporations and was unable to edit my post but what I meant was company. A limited liability company to be exact. I was thinking about the pros and cons of signing legal documents under my own name versus signing legal documents under my own name as an LLC. Legal liability and taxation. I have enough education and understanding and I'm motivated to get out there and close some deals. Looking to help people and solve problems in the process.