Multiple Investors Starting from Scratch

[Patrick Medeo]

There are 3 investors involved and we have a solid starting fund. Collectively, we have limited to no experience in real estate investing. Our goal is to begin investing in income producing properties and build a portfolio, without doing all of the day-to-day management (potentially partnering with a property management co). We are in Philadelphia.

What is the first step in getting started; 

1) Valuing/finding properties? 

2) How should we incorporate?

[Joseph Salegna]

@Patrick Medeo that's great. Congrats and good luck. I am sort of in the same situation. Here is what i have been doing lately. Research as much as you can on markets whether it's in Philadelphia or out of state. I am the type of person that reads up on as much as possible so that i understand all the risks. I also agree with @Elizabeth Wilson and @Jeff Wallenius. I would consider setting up an LLC (this is what i am doing) or LP but definitely speak to an attorney or CPA as well. There are definitely legal benefits to incorporating but you may run into financing challenges since the LLC isnt seasoned but i'm no expert. You may want to speak with a mortgage broker to run this by him or her as well. PM me if you have any questions.