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Updated almost 6 years ago on . Most recent reply
Starting a real estate investment company - LLC
After several months of researching, I want to begin the process of starting my own real estate investment company (a LLC). I want to eventually use it to get into wholesaling, flipping and eventually rental properties.
What are your thoughts/advice on this process? Where’s the best place to start? Feel free to share your past experiences - good or bad. Thanks!
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
Originally posted by @Louis Trinca:
After several months of researching, I want to begin the process of starting my own real estate investment company (a LLC). I want to eventually use it to get into wholesaling, flipping and eventually rental properties.
Establishing an entity is simple. Go to your secretary of state's website and see what's needed. If not a complicated enterprise with no partners, a boilerplate OA should suffice.
Do not do active income activities (flipping, wholesaling) and passive income activities (rentals) inside the same entity. Tax nightmare.
I've had LLCs and an s-corp since 2003. They have specific purposes. Most on BP are just over-sophisticating wth all the LLCs and making a mess for themselves IMO. Be certain of your reasoning for having one.