Formal Business Set-up - When?

[Glenn Jackson]

I am new to real estate investing and am currently interested in real estate wholesaling. I am in Texas, in the greater Houston market.

My question is do I need to create a formal Business entity before starting to make wholesale deals? I know from an accounting / tax perspective this would make things cleaner but I want to get started in finding / making deals. Is this something I can do later or something that I even need to do at all?

[Guy Gimenez]

If you don't have substantial assets, and your sole intention is to assign your contracts, IMO, you don't need an entity. Just get help drafting the contract to limit your liability. Don't step over a dollar to save a dime. Get good legal counsel and be diligent about learning contracts, assignments, valuation, repair costs, etc.