Setting up a Wholesaling LLC

[Melissa Carmona]

Hi everyone,

I have been thinking about starting to wholesale along with two other friends. We haven't done our first deal yet but we are starting to gather leads and grow our buyers list, marketing campaigns, etc. should we do our first deal first and then create the LLC, or should we create the LLC before we get our first deal? We wanted to go through the whole process first to see if it is something we are sure we want to keep pursuing

Thank you!

[Steve Morris]

What assets would you put in the LLC? The main purpose of a LLC is to limit recourse against an asset in the LLC to only the assets in the LLC.

Any income would be passed thru to members based on how you draft the operating agreement.  As noted, friendships "change" once they become business relationships - So make sure the OA is clear and understood by all.  I'd hire an atty.