Is it a good idea to form an LLC

[Brandon Davis]

Hello BP, First off let me apologize if this question has been answered already.If it has just drop a link and I will do the research from there. I'll make this quick We are three USAF veterans all under 27 years old. We are looking to invest in real estate in various cities of Atlanta Georgia primarily to flip the properties to generate capital and later transition into a mi off buy and hold flipping. We do not have a lot of cash liquidity babe collectively 15k I was curious is it good idea for us to form a LLC/ partnership so that we can invest collectively. On second thought I have had the idea to use veteran benefits but I was made aware that we would not be able to use vet benefits in this way because it is now a business. So basically should we form an LLC if we plan to invest together as partners

[Marvin McTaw]

Hey @Brandon Davis there are pro's and con's to forming the LLC. Forming the LLC will definitely help from an overall standpoint but with the amount of money you are talking about, you're probably going to be better off using many of the low and no money down strategies available to you. As veterans you can probably use your VA benefits to buy a house but that's more on an individual basis as opposed to doing stuff collectively.

The one thing I would add is that just because you might all contribute the same amount of money does NOT mean you should have equal ownership. Who is going to be responsible for what? How will you manage everything? There is a lot of stuff to think about and consider and the process of forming an LLC will help you all to think through a lot of the different scenarios.

A side note, if you guys have IRA's you can convert them into Self Directed IRA's as another source of capital. You can also ask family and friends to lend you money as private lenders

If I were in your shoes, I would probably just do a deal together first without the LLC but write down a few of the bigger pictures points together in an agreement form and see how it goes. It might turn out you can't stand working with each other and/or you might find out one or more of you just aren't that serious about investing. They are more talkers than doers.

Good luck to you and your potential business partners in your real estate investing journey!