Forming an LLC before purchasing Rental properties

[David Brian Medina]

Good Afternoon BP, I was wondering if anyone here has formed an LLC before buying property? I’ve met a few individuals in my city that chose to form an LLC because they planned on purchasing a lot of properties. Please let me know what you guys did. I’m still pretty new to the real estate investing world. Thank you

[Ali Boone]

I'm very much of the stance that forming an LLC before you buy anything is very much putting the cart before the horse. If you are financing, it will goober up your financing, it makes things more complicated, and in my opinion doesn't offer the liability protection everyone thinks it does. Here's info on what I found when I researched and then there's a million comments with more info-

https://www.biggerpockets.com/renewsblog/2013/08/1...

But even if it was a more valuable thing, it is still putting the cart before the horse. You will have a million other things you need to deal with and learn when you start investing, so adding more on top of an already-heavy workload is just not to your benefit. And $10 says half of the people who form LLCs because they think they are going to buy rentals never actually buy a rental. 

Buy the rental first and make sure it's actually going to be a thing.