Sole Proprietorship or LLC?

Sole Proprietorship or LLC?

To whomever might have some advice,

On of my assignments for this week is to name and set up a business to put our rental properties under. I have the name, but I'm not sure if I should go with a sole-proprietorship or an LLC (or something else?). I've read a lot about both but don't really know enough. Can anyone give me pros & cons from their own experience? I would be very grateful. I'll be calling the ITS Advisory Line tomorrow, but I thought I could get some good info from those of you who've been doing this for years.

Thanks in advance,
Rina

P.S. I've already learned so much from following the dialogues in these forums. I think it's great that so many like sully & cbrpower are willing to share.

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"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


how to close

hi guys. this is tong, new comer. i hear and see you guys say " i close couple deals this month" i have a question. how do you close the deal? where do you get the money to close those deals in a month? who will lend you the money for the deal since you dont even have any money or credit at all. especially for the rental properties. i'm kind of missing something here. can any one explain it please. eg. i found a residential reo property 3bd 1bth on half ac. fmv is 96k. asking price 75k offer 65k for it. tanant still live in the proterty and would like to continue rent it. is it a good deal as a rental property? how can i get this deal done? i have no money, no credit. where can i get the money to close this deal? how does it work guys? anyone can help me understand here. thanks in advance.

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tongdvue


When to start my LLC?

My wife and I are getting ready to get into the real estate game and we have been wondering, should we have our LLC set up and going before we begin our investing? Or, is it a safe option to begin our investing and do deed transfers to our LLC later on?

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Shawn Lafever


My Answer

Iri46304 - I've been doing this for years and can honestly tell you the best way is to have whatever entity you are going to use ready to go before you start. I invest in many states so I have different LLCs that are registered in that state to do business. Thankfully, my experience from running my 3 state public accounting practice gave me the insight on structuring my company for maximum tax advantages. Just keep learning different phases of the business and it will all come together in the long run

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Always Looking to Acquire Houses | Always Looking to Amaze Investors


Thanks

Thank you so much for your advise, Bill! Once we have our LLC in place, do you have any advise for establishing credit under the entity's name? I have heard that it is very difficult to buy real estate under the name of a new entity.

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Shawn Lafever


It is harder

Shawn-
There is no easy way to get the credit process working in your favor except pay your own personal bills and selectively apply for company credit. Even if you are extended credit for your company, most banks still want you as the borrower. That is why I have been building my business through subject-to purchases, lease options, owner financing, private mortgages, etc. I've been doing this for 10 years and have found being in charge of your own financing is the only way to insure success.

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Always Looking to Acquire Houses | Always Looking to Amaze Investors


Thanks for the advice!

Thank you very much for the advice, Bill! We're going to go ahead with our plan to begin an LLC, and then start our real estate adventure! Wish us luck!

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Shawn Lafever


newbee

I recently moved to florida on the se coast west palm beach area nad this is the land of foreclosure should I consider starting here


insurance transfer

Hi Team,
Has anyone experienced transfer of real estate homeownership insurance to LLC business insurance? What are the going rates and who underwrites these in the DG network community?
Susan Boyd

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Susan and Jim Boyd
Cochise County, AZ
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