LLC advice for first time investor

[Rohit Sareen]

I finally took the plunge and bought my first rental investment property. I have bought the property in my name. I have a decent net worth and both of us (me and wife are W2 paychecks) and now I am being advised / reading advise to have this under an LLC. Looking for guidance, tips, suggestions, best practices as to how to go about it. What kind of LLC I should create? Should I use online services like LegalZoom? Do I need to have a CPA first? CPAs seem to be very expensive costing thousands of dollars! Do I also really need to consult a real estate attorney? Again, not sure how much will that cost me! My first rental, and I will have a very small cash flow (Thanks to high rates and high prices, but I took the plunge and decided to get into it anyways to build long run wealth). Next goal is to get into STR to maximize benefit on W2 Taxes and then hopefully try a flip. But at this point do not want to get too much ahead of myself.

So, basically, keeping my current situation in mind, how to form an LLC, any specific type (cost effectively) and move my property into that LLC and eventually all my finances too. I assume, I will have to open business accounts and use those to manage my business expenses and business earnings etc.

[John Morgan]

LLCs are very easy for any attorney to pierce and show you're behind it. Get extra liability and call it good. Get your first 10 properties in your personal name for lower interest rates, then get an LLC to buy the rest with DSCR or commercial loans. I learned the hard way. I bought several in my personal name then deeded them over to my LLC with mortgages on them. Don't do that. lol. I've talked to several attorneys who invest in RE and this is what they tell me. They put them in their personal names and get extra liability. They say a million in liability is enough.