To get a W-2, you would need to form a C-corporation, make yourself an employee, and have the corporation pay you while also withholding income taxes, FICA, SUTA, etc.This leads me to a more simple plan: if you insist on an LLC, you'll have to report the income on your personal return, so a bank will see the income anyway.

Plus you can always network and form a partnership with someone who has the variables you need. :)Good Luck to you and excited you are getting started.

(But, pro formas are NEVER right!)

This is a question for the lawyers, but maybe you can transfer to your personal name, secure the good debt, then form a new LLC to transfer too.

2 Do you need to form a corporation or legal business In order to wholesale homes?

Anonymity doesn't work much either, you usually cosign for your mortgages, and you write the checks, you sign the closing documents, you hire the workers, you call the plumber, you interview the tenant etc.So my advice, form a simple LLC, follow the rules, get insurance, and operate your business ethically. 

Here are the numbers for the property:OverviewMonthly Income: $900.00Monthly Expenses: $961.09Monthly Cash Flow: -$61.09Pro Forma Cap Rate: 3.54% NOI: $2,016.00Total Cash Needed: $16,225.00Cash on Cash ROI: -4.52% Purchase Cap Rate: 3.54%Property Information Purchase Price: $56,900.00 Purchase Closing Costs: $2,000.00 Estimated Repair Costs: $0.00 Total Cost of Project: $58,900.00 After Repair Value $56,900.00Down Payment: $14,225.00 Loan Amount: $42,675.00 Loan Points: $0.00 Loan Fees: $0.00 Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $229.09ExpensesVacancy $54.00 (6%) Repairs $90.00 (10%) CapEx $198.00 (22%) Insurance $100.00 (11%) Management $90.00 (10%) P&I $229.09 (25%) Property Taxes $200.00 (22%) Total $961.09 (107%)Financial Projections Total Initial Equity: $14,225.00 Gross Rent Multiplier: 5.27 Income-Expense Ratio (2% Rule): 1.53% 50% Rule Cash Flow Estimates Total Monthly Income: $900.00 x50% for Expenses: $450.00 Monthly Payment/Interest Payment: $229.09 Total Monthly Cashflow using 50% Rule: $220.91

@Keith Boley @Salim BhuiyanYes, I would use them again, and recommend the DST.I think it is the best method of asset protection for someone who holds a self owned portfolio, especially as a California resident.Royal legal has had growing pains like I mentioned, but they are fair and the best at the DST used in this fashion.Like I mentioned, once you form a relationship with one of their attorneys, you have a point of contact and not messing with their outsourced answering system.For example, the Attorney I am in direct contact with at Royal Legal is extremely personable, knowledge, and timely.

@Christina LaBordeIf you are planning to form a single-member LLC, you should be okay with using any of the services discussed above.

We have gathered much of the data needed, but my major concern is obtaining the real rental history of a property and not just running numbers based off the pro-forma data from the MLS.