Question about creating a LLC

[John T.]

     How are you all. My name is Johnny. I just wrote my first post yesterday, and now I am back with more questions. So far people out there is being very helpful. I think is incredible that some people with so much experience in RE is still willing to put out some of their busy time, and guide newbies as I. Thank you so much for that.

Here is my question. I am in the process of getting my first multifamily. I am targeting Jersey City, Union City and West New York. Since I want to start buying and hold, for the long term, Do I have to form an LLC before I buy anything or is better after I bought it? I said this, because I think I read in some place that when you are new or is your first property it is very hard to get a mortgage on an LLC, so it is easier to buy the property under my name, and after that make the transfer to an LLC. Is that correct?

     What should I do first in your opinion? 

     Thank you all.

[Scott Morongell]

@John T. there a many ways to set this up. you can consult with an attorney and explain to him your strategy and he will be able to lead you properly with when you should set up the LLC. As you grow you may want a holding company with multiple LLC's (either one per property or a few, say 250K worth of assets in one LLC) then your holding company would show interest in those LLC's. Like I said an attorney will be able to direct you best.

I do agree when starting out buying in your name may be easier and then transferring it into an LLC after. Only thing to keep in mind is if the note is called be prepared to handle it appropriately.

Best of Luck John!