Why form an LCC?

[Brien Houston]

I am currently looking into making my first purchase on a rental property and have heard a lot about forming an LLC before I do. I was wondering what benefits I would get from forming an LLC and if it would make a difference If I formed the LLC before or after I make my first investment. I have also read that by forming a corporation it would create a plethora of tax break I would be able to take advantage of, would an LLC afford me the same opportunities as a corporation?

[Paul Timmins]

@Brien Houston

Welcome. Thanks for your service. It might be a good time to have a short conversation with a real estate CPA. You can get some great advice about entities and tax strategies. Great team member for you get referrals from the local REIA.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 50 past ones to catch up on.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Good luck

Paul