Establishing an LLC before wholesaling.. yes/no?

Question

Hello BP Family,

Would you all recommend establishing a LLC before wholesaling or is this something that can be later on once you actually have a few deals in the bag.  As someone who is starting off, i'd prefer to keep my costs to a minimum and would prefer not to pay the fees for establishing a LLC and getting a business license.

Thank you,

Haider

Account Closed · Answer

id say get a few deals under your belt first so you have the money to do so. at least that is what i am doing.  spend your money on marketing for now unless you have enough money to get an llc already

Haider Zaman · Answer

Thank you both for your advice.  @Russell Ponce.. what do I do if I can't find an investor who will buy the property I have under contract?  Naturally, I didnt do a good job of negotiating or the deal itself isnt good.  But with that said, what happens if I have a contract on a property and I can't find buyers.

Would the property go back to the seller or am I under any obligation to buy?  Is all this specified in the contract?

Thanks

Michaela G. · Answer

You can create an LLC in a day online through legalwiz or similar.

Most people who want to go into real estate never buy their first house. It takes a certain mindset and most people have their strenghts somewhere else.

So, it would be putting the cart before the horse to start an LLC first, when you don't know if you're actually going to do something with it.

Russell Ponce · Answer

No. Generate leads and make offers. When you start making money go talk to a good CPA and go from there. IMHO

Jack Tesell · Answer

An LLC would protect you personally in most cases if something goes wrong with a business deal. In Ma it cost $500 per year but believe it is well worth the investment.