To LLC or not to LLC?

[Dillon McGough]

Hi all,

I'm currently at the point where I'd like to actively pursue my first investment property, but I'm wrestling with whether or not to set up an LLC. From my understanding, if I'm going to set up an LLC, that's the first thing I need to do before I get preapproved, since it has to be through the LLC? Just looking to see what people's thoughts are on this. It seems for a lot of people that an LLC is more for peace of mind. Thanks in advance for comments!

Dillon

[Steven Stokes]

To be very honest, you should talk to a good real estate attorney and tax professional about your specific situation. What makes sense for me or anyone on here may not make sense for your situation or for where you live. For some umbrella insurance is enough, for others an LLC is the right move and for other a trust is the best route. But just like a good doctor would not diagnose your condition over the internet, giving you specific advice about your personal situation is just as bad.

It's good to know what your options are when you do talk to a professional on your team (I'm assuming you are building a team). 

But this should not delay or slow down your investing plans. 

I hope this helped. Good luck.

Stephen