I NEED HELP!
Hi, I am at the moment trying to get into purchasing residential properties and either fixing and selling them or putting it up for rent. However, I am a little in the dark as to the technical aspect of this business. I am currently using my name to purchase the house, but I dont want to use my name for future properties, can anyone please give me some information that can help me start in the right path. Also what are the implications for putting properties in ones name, as oppose to putting it under a corporation, i.e taxes and all that. All the suggestions and input will be greatly appreciated :-?
I know that this is not the answer you are looking for ..... but .... I would advise that you determine what area of real estate you want to work in, then find some deals before you worry about the little details. Almost every investor bought their first couple of properties in their own name. There area so many details to worry about in real esate that if you worry about them all you will never get anything done.
Do you think that great chefs started out by worrying about their corporate structure or by learning how to cook?
Brenda
Good point Brenda. Maybe you could clarify one thing for me. I have a few properties owned under my name, is it difficult to move them into a LLC or other entity?
Ravi
I understand what u mean Brenda, but I also want to cover any loose ends that could be covered at the beginning phase, cause I honestly dont know much about real estate, so I want to get as much info that I can get on it. And what do u mean by what area of real estate do I want to get into. I am currently just interested in sellin and possibly renting
Taking the property in the name of a corporation or LLC, etc. will give you some tax benifits and some possible privacy, but why complicate things in the beginning. I agree with learning the process first. Get one or two under your belt then form whatever entity you want.
hi,i am a rehab invester and a contractor i doo a lot of work myself so i just put my homes in my name there is no real protection in an llc or just your name an llc could protect your personal assets .
I once read in a "how-to" landlord book a little trick you may be interested in. By using a new "company name" behind your own name in your income property checking account, you can add a "shell" name. For example, I told my tenants I work for a management company called "XYZ Management Co." To facilitate this, I opened a new checking account with the name "John Smith XYZ Management." That way my checks, correspondence and payments go to XYZ Management and it looks like you are not the owner. This, along with a PO Box are a great way to protect your privacy.
I wouldn't worry about forming an LLC until you get into a few properties as there are annual costs associated, plus up front fees & attorney fees.