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Updated over 5 years ago on . Most recent reply

Jason Pate's profile image
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Jason Pate
  • from Birmingham, AL
  • Member since Sep 12, 2019
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Jason Pate's profile image
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Jason Pate
  • from Birmingham, AL
  • Member since Sep 12, 2019
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Jason Pate
  • Birmingham, AL
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Starting Out

New Investor: Do I Need An LLC Before...

Jason Pate
  • Birmingham, AL
Posted

New Investor looking to make my first deal. Do I need to set up an LLC prior to making the offer? Why or why not?

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Scott Smith's profile image
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Scott Smith
  • Attorney
  • from Austin, TX
  • Member since Oct 27, 2014
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Scott Smith
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  • from Austin, TX
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Scott Smith
  • Attorney
  • Austin, TX
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Scott Smith
  • Attorney
  • Austin, TX
Replied

One strategy for investors is to buy properties in their personal name to get the best financing. After everything is finalized with the property warranty deed recorded, transfer this to the newly formed LLC.

If you currently are a high net worth individual and want to protect your personal wealth from this new investment, and financing is not an issue, I would set the LLC up first and consider anonymity to protect your personal wealth.

Wish you well!

  • Scott Smith
  • Podcast Guest on Show #109
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