Doing Lease option deals with or without a corporation?

2 Replies

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.

PPR Note Company
Note Investing
Diversify your portfolio and get completely passive cashflow.
All without tenants, repairs, or vacancies - in a real-estate-backed investment fund.
Here's how.