However, she is certainly an individual I am planning on reaching out to, as we have developed considerable dialogue since we first met in person last summer.Again, thank you for the input and experiences you have shared!

Hi All,When establishing a LLC or a Corporation to either buy and hold properties or wholesale properties, what legal concerns should I take into consideration when forming either of the two?

The costs of maintaining LLC's should be taken into consideration.

This is a valuable consideration because if the values are lower than conventional finance minimums that will increase the time on market and difficulty of exiting to a primary buyer.  

so in addition to the 400 to 500k in cash you need 20k a month in fixed costs 20 to 50k a week ( that is reimbursed but say 100k liquid for that).so to get started looks like500k in equity100k  to float draws 120k  in HML payments.And you better have a great pipeline to get the deals and you better have a great agent to sell the deals.so your making net 30 to 60k a month.. so 360 to 720k a year in net income if it all goes right which it never does you will have one you lost 20k on guarantee that..

I do have more than 5%, I just feel my extra money past 5% is worth more to me as a cushion of cash if anything were to happen and I would need to draw from it.

@Jazmine S. with either a Hard Money Loan or a Conventional Rehab loan the money is normally paid to the contractors in "Draws".  

@David JenkinsCap Rate = Net Operating Income (NOI) / Price of the PropertyNOI = Annual Income - Operating Expenses NOI does not take into consideration debt service, capital expenditures, or depreciation,  Example:  Price $1M, Annual Income $200K, Operating Expenses $100KCap Rate = ($200,000 - $100,000) / $1,000,000 = 10%

Yes - a good consideration to be sure, though still very early in the consideration process.

The best part is you'll be the only offer on the table for consideration, so your chances of getting it accepted are much higher :-)CASE STUDY: 1139 Clinton Rd, Sacramento, CA 958251139 Clinton Rd is a duplex in the 95825 zip code near the Arden Fair Mall and Sac State.