Should I create an LCC before I invest?

[Moses Castillo]

I have decided to begin my journey as a REI and want to buy properties and convert them into rentals. Do you recommend starting as an LLC before getting financing or under my personal account?

[Ryan Ingram]

Hey Moses,

I don't think it matters too much. Some states are easier to start LLCs in than others. So, I am speaking on this from an Ohio perspective, where it takes about $120 and 12 hours from paperwork to grand opening on an LLC.

For what it is worth, I purchased my first property a few months before I started my LLC. Later, I executed a quit claim to get the property into my LLC.

For your first property, the liability exposure won't be too severe if it is in your personal name. You can easily get an insurance policy with $1,000,000/$2,000,000 liability limits. 

I hope this is helpful. More than happy to elaborate if necessary.