I want to get into real estate investing as soon as humanly possible, but I recognize that it's in my best interest to get my finances in order before I try to pick up any more debt commitments. 

If you've proven yourself as a reliable contractor and can bring deals to investors, you'll be unstoppable.

If your attorney does recommend LLCs, then they need to be recognized by the state where the property is, or you have no protection (I believe, not being an attorney).

@Matt Ferch It might be hard for someone to say definitively what is right for you without knowing everything about the two of you and your business agreement but I'll give some quick outlines here and some more things to think about further down:Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names).

If you realize a loss, then you cannot recognize the loss on your tax return.

You separate that way but do not recognize any gain from the sale. 

I would not hand out aimless advice.If you don’t have experience with it that is fine, but attacking a concept that is well documented and proven is not good for the bp community either.

Generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names).

A couple of old tenants also spread rumors about possible causes but none proven accurate.

So does that mean you are liable and can face legal actions if it can be proven that you did not act in the seller’s best interest?