New investor, is LLC the best way to go?

[Steven Hershey]

BP Good Morning! My wife and I are about to close on our first turnkey rental property in Lebanon, Pa. This was an exciting process and we wanted to get our feet wet so we decided to go with a turnkey property. We want to grow our investment portfolio and have a short term goal of buying another at this time next year. Long term goal is to have at least 10 doors in 10 years.

We are indecisive on how exactly we want to buy for the future. Id like to brrrr when she would like to buy turnkey. Ultimately we need to do a brrrr for her to see the difference.

My question is how much will an LLC help us with our future in investing? We would possibly like to start a property management company down the road and if we had a LLC already that would be helpful im sure. But would we benefit with buying properties in a LLC? Im a quick learner and i can educate myself on personal business but I would like some good insight from someone that has done this in the beginning of there real estate investing career.

Thanks again.

[Nathan Gesner]

You do not want to mix your personal money, your investments, and a property management company. They should all be separate. Investments would be under one LLC and then your property management company would be set up under a separate entity. Rent money for your investments should never be mixed with rent money for properties you manage. Rent money for both should never be mixed with personal money. This is typically illegal and just bad practice.