Business

[Rikard Lorén]

Hi!

So currently I'm learning and reading about real estate. My plan is to start small ( 5+ unit ) and get experience and snowball forward.

So i was just thinking that it would be a good thing to have my business set up and ready to go once i decide to look closer on a property. How does the flow work ?

From what i have learned so far/ the picture of it that i have is that u have a company ( LLC ) "Rgcompanies" as example, that i own myself where i will also put in some money for exspenses, fees and sush that i will be using thruout the the day i decide to look closer on a property until i own it. The property will be in its own LLC and as the cashflow comes in, i redirect it back to my main company "Rgcompanies" and continue to do so with all new properties.

Have i got the picture of the flow right or did i get it all wrong? 

Question: what companies/titles do u set up before buying properties and how does the cashflow between  them work?

[Bill Gulley]

Sorry this went unanswered for so long.

The issue with your questions are that they cannot be answered simply, at least as to what you put into a company. 

I don't know what you mean by an Rgcompany.....

I assume you mean to operate here in the US.

I suggest you set up an LLC for multifamily properties. Initially you don't need a holding company just operate that single LLC.

Yes, you need to deposit cash or capital into the LLC, this is owner's equity and you can take money out as you like.

I don't like to put vehicles in an LLC, but the LLC can pay for expenses and entertainment with limitations.

There are two folks you need to talk to before you jump in, an attorney and an accountant/CPA. 

Your questions are really too involved for any simple answer in a forum post.

Good luck :)