got property under contract and setting up llc

[Jason Malabute]

Hi guys,

I finally have my first rental property under contract. As long as the inspection goes good on Monday I will have my first rental property. I'm so excited.

Questions:

1. When should I start setting up LLC to put property in?

2. When should I tell the property manager so we can start doing paper work so he can start managing property ?

3. When should I open business bank account for this property?

Do I do all the things above after closing?

Thanks,

Jason

[Scott Matthew C.]

@Jason Ma When is the closing date? What state is your property? The reason I ask is some states have rules about setting up an LLC and it can take longer. New York is a pain in the you know what. I feel sorry for those in NY. States like MI is simple and fast. I can have an LLC in under 7 days. I pay a little bit extra to have it rushed and I have to hand deliver documents in person to the state.

You could ask someone in your REIA if they have and LLC that hasn't been used. Buy it off from them. Again, have your attorney research and vet it out to make sure it is free and clear.

Again, if you're in no rush just close in your name and transfer it to your LLC once it's created. No big deal.