New Here… Looking to build an Investment Group

[Toby Real]

I’m an entrepreneur living in Hawthrone, California ( Los Angeles County) I have been listening to the Bigger Pockets Potcast for a while now.

I’m finally ready to slowly get into real estate. My challenges : Besides living in California which probably has one of the highest Real Estate Prices in the Country, I’m an entrepreneur with some small businesses… and as most entrepreneurs, I’m trying to save the most taxes as possible by keeping the profits on the books low. (Which is pretty simple if you have a lifestyle business and your life is your business and most expenses are tax deductibles) But of cause this creates a problem to qualify for conventional loans even when you have the down payment.

My credit score is mostly good / excellent .

Since I’m looking to invest in multiply family properties for rent, my solution is to build an investment group ( if that’s the right term for it) and come up with a much higher down payment or even the entire amount by partnering with investors.

My questions are :

• Do I register an LLC first ( strictly for that purpose) and make Investors partners for each property or do I form an LLC when I have Investors together?
• Are there articles / links to steps on where to hold the money for / contracts to make the down payment available etc.

I’m assuming at the point of purchase the steps will be the same than other purchases made by a sole entity or company !?

Thanks in advance in your interest or tips for this post.