Should I get a LLC before my first deal or not

Should I get a LLC before my first deal or not

Flipper/Rehabber · Norton, MA · Member since 2019 · 31 posts · 15 votes

I'm going to start a LLC. I've yet to get my first deal. But I need the Corp to get a loan. Should I get a s or c Corp. I plan on flipping houses and using hard money loans.
I was going to wait for my first deal but I don’t want to lose it while waiting for my Corp to start up. 

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Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
6y

I agree with @Cameron Tope. Too many new investors waste time, energy, and money worrying about legal entities, website, logos, company names, a mascot, a YouTube channel, social media pages, and anything else they can do to avoid worrying about the meat and potatoes of the business--finding and executing deals. 

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  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Charles Graham:

    I'm going to start a LLC. I've yet to get my first deal. But I need the Corp to get a loan. Should I get a s or c Corp. I plan on flipping houses and using hard money loans.
    I was going to wait for my first deal but I don’t want to lose it while waiting for my Corp to start up. 

    If your 1st deal is going to be a 1-4 unit property no LLC is needed. You'll need to buy it in your own name to get a 30 year residential loan on it.

  • Real Estate Agent · Memphis, TN · Member since 2019 · 2 posts · 0 votes
    6y

    @Nicole Heasley wow, I pretty sure you just described me!!

  • Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    @Keenan Thompson It's never to late to get back on an active track! Let me know if there's anything I can do to help you. 

  • Real Estate Agent · Memphis, TN · Member since 2019 · 2 posts · 0 votes
    6y

    @Nicole Heasley Most definitely!

  • Real Estate Agent · Mesa, AZ · Member since 2016 · 26 posts · 3 votes
    6y

    Hi Charles, I wouldn't worry that much about that. Why? You will figure out down the road what you gonna do from the  legal protection point of view.  Get the deal done and later you will figure out what's good for you.

    Flipping ...you might need it for the tax purpose, but for now...just get that house flipped!!! I hope it helped!

  • Member since 2020 · 1 post · 0 votes
    6y

    If you check with your Secretary of States website it should give you the estimated time and fees associated with starting your entity. Also, look into your state waiving filing fees, Pennsylvania does for Veterans. So getting your EIN and LLC filed may cost you nothing and if I'm not mistaken this is a bare minimum necessity to have your separate entity from your person and then you could continue with your purchase. Hope it works out in your favor.

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