Starting my LLC, but no lawyers will engage

[Mike Flint]

I live in MD and am focusing on properties in both MD and NC. I've owned one rental for a few years now and want to expand. I have contacted several lawyers in an attempt to set up my LLC; however, can't get any to engage.

Any and all thoughts, guidance, or references would be appreciated.

[Account Closed]

Originally posted by @Pamela Morrison:

@Account Closed yes this is great advice. I was only trying to offer a suggestion of who else can help set up an entity, assuming he knows what type to set up. Or has already been legally advised as to which is best. Sometimes these forums don’t give you all of someone’s information. What are your responses to the people that tell him to set it up himself?

 Your Comment: "What are your responses to the people that tell him to set it up himself?" I've been investing in real estate for 25 years and I was a loan officer. I've battled in court and prevailed each time. Yes, there have been a few times. What I have learned along the way:

1. I do use LLCs, formed by an experienced attorney. 

However, umbrella insurance is sufficient for most investors starting out.

2. Lots of people never get started in real estate because they are too concerned about forming LLCs. Ironic, isn't it.

3. You don't get sued unless you have *substantial* assets.

4. A lawsuit costs each side about $50,000 and takes about a year and a half if everything goes smoothly. Lawsuits never go smoothly. The loser can appeal. The loser can file bankruptcy and get rid of the judgment after they lose the appeal. 

The winner is rarely a "winner". Lawyers will not guarantee the outcome of a lawsuit no matter how "righteous" and indignant one side or the other is. 

5. Umbrella insurance prevents most lawsuits. LLCs do not scare attorneys. Often the opposing attorney will name you personally as well as the LLC anyway. You have to PROVE you are separate entities and most people don't maintain an LLC properly to prove that to a judge.

6. Most lawsuits (95%) end up in a settlement rather than going to trial. Most people will settle (even f they are not wrong) in order to avoid going to trial. Personally, if the settlement isn't in my favor I take it trial. I win because I don't put myself in risky real estate deals and I disclose in writing, everything to everybody going into the transaction at the beginning.

7. People who form their own LLC may as well do their own root canal.

8. The most expensive real estate investing is done by people who never start for want of an LLC. If you never start, you never finish the race as a winner.

I would recommend a private consultation with someone like @Stanley Bronstein before deciding if you even need an LLC.