When is the best time to establish a legal entity (LLC, S Corp, etc.) for REI?

[Brandon Chung]

Hi everyone,

My name is Brandon Chung, and I am a first-year college student learning about real estate investing. I was wondering what everyone's experience with establishing a legal entity for REI has been like, and when do you recommend a person to do so?

[John O'Leary]

If you plan on buying in your entity I would set it up prior to seeking any type of pre approval for financing. You will need it in place to submit offers, getting your POF/Approval letter, and will avoid delays once you have started the process. Discuss any pros and cons with your attorney and CPA to weigh the advantages and disadvantages, particularly regarding liability protection and tax benefits. GL!