I want to buy investment residential property. Should I form an LLC to protect personal assets?

Give me a good site or information to tell me if I should do that? Thanks.

this is one of those penny wise pound foolish sort of questions... it would really be in your best interest to see a lawyer... I know states sometimes have a free service which can help you find a lawyer to suit your needs...but my good friend in business is in a serious out of the blue lawsuit and she almost lost her house...not something to mess with. Just spend the money and sleep well at night

LLC may not be a good idea because of complex issues involved. A lawyer could lead you to a better alternative.

A single member LLC should do you find especially if the LLC will just be holding title to the property. Make sure you are aware of the tax implications...

Hope this helps...

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Thing is, often you will still be asked to provide a personal guaranty when borrowing money for the LLC. However, it should provide some protection in relation to liabilty providing you didn't act in a negligent manner

Before jumping into the waters with both feet, I suggest you 鈥渢est the waters鈥?by putting a hand or a foot in that water. You should determine how you鈥檙e going to approach the whole project:.

Tax sales? Foreclosures? An overview: Due to the fact no one has the opportunity to physically inspect the interior of the property prior to the sale to determine exactly what the property needs, no one knows what he/she/they are getting into - how much its going to cost to bring a property up-to-code.

Pre-foreclosures? An overview: The residents of the house may have every attitude toward 鈥渂ottom feeders鈥?[because believe it or not, that鈥檚 what they call us - the professional real estate investors] from 鈥淐ome on in, we can talk.鈥?to down right defensive, rebellious and animalistic - answering the door with a baseball bat or even worse..

Word-of-mouth? Unless you already have a reputation for being a very fair and honest person - paying folks an almost-market price [OR exactly what they are asking] for their property, this will probably come into play until sometime in the future.

MY SUGGESTION: Join a local investment group or club to see how their members got started - AND BE ACTIVE!. From my experience and because of the group I belonged to and was active with - D.I.G. - the Diversified Real Estate Investors Group - I learned a lot and I shared a lot. All of us had a common interest and it was one of the best aspects of the organization! It was interesting! it was fun!

There are over 1,000 members in that group and meet once a month in a Masonic Temple. The group has a monthly newsletter.

At the general meeting, there are guest speakers and there are smaller groups for investors with different interests: new member services; financing and acquisition; foreclosures; shore properties; real estate law; experiences with local housing authorities and Section 8 tenants, etc. The group goes on cruises and has other exciting functions.

In addition, we had sub-groups which met twice monthly - once for breakfast and another time for dinner and cocktails. It鈥檚 a terrific group of folks.

I discovered many of the newer and newest members acted on their own behalf and in their own name. After they acquired a few properties, they looked into forming their LLCs and Subchapter S corporations.

The whole organization and my experiences with those fabulous folks were wonderful!

I use the past tense, because we accumulated the properties we wanted and I moved on to other investment opportunities.

Thank you for asking your question. I enjoyed taking the time to answer your question. You did a great job - not only for your information, but for every other person interested in reading my answer.

I wish you well!

VTY,
Ron Berue