Newbie Investor LLC Question

[Lashad Hamilton]

Hello BP community,

I am currently in the US Navy and my contract is over November. I am currently stationed in Southern California but plan to move to San Antonio, TX to live and invest. I am cleaning up my debt to get my credit score up to at least 620. Also I am saving money for my down payment on my first property. First question, since I know I will go to TX should I start the LLC in TX or CA? Second, how soon should I start the LLC? Third is there a certain way I should set up the LLC to help for tax purposes? Any information is greatly appreciated.

[Mike Garland]

There are many posts about financing property in your own name or in an LLC on Biggerpockets. Check out those posts. With an LLC, you will typically have to get bank financing through what is called a portfolio lender (they keep their loans - they don't sell them), such as a community bank. Terms are shorter with adjusting rates. Typically require more money down.

Sounds like you are a good candidate for house-hacking. Again, lots of info here on this method of getting into REI.