Should we form a LLC first before we start looking for properties?

Greetings all, Looking to form a multi-member LLC in Texas.

Everything has been redone "Inside and out" I am concerned that this could cover up issues with the property and make the seller inflexible with price.I have asked for pro forma number and tenant profile to see what they are claiming and who I could be inheriting.

Because long term that should be a the goal, both sides rented,I ran the numbers thru my excel pro forma program, but i created an estimate of $2,200 for dwelling insurance, and left off PMI.

The lender worked out a quick pro forma with me: a deal needs 1.25 debt coverage to qualify.

Generally speaking, SEC compliance is not an issue if you're looking to form a small LLC with people already known to you. 

I get contacted every week and sometimes every day by different buyers wanting to form a relationship.

That competition drives cap rates down (I have seen deals trade in the 5% cap range) and creates an atmosphere where you are competing for deals that are being sold on unrealistic pro forma's. 

I’m also including link to follow-up articles that he wrote. https://www.biggerpockets.com/renewsblog/2015/03/03/why-you-cant-make-money-on-30000-houses/https://www.biggerpockets.com/renewsblog/capex-include-pro-forma/https://justaskbenwhy.com/2016/03/31/how-much-capex-do-i-need-for-real-estate-investing/3.

I called him a few days later and it went to voicemail. 2 weeks later, he sends me the marketing package with pro formas.