From the members at my local Real Estate Investing Association that I organize to my loyal email subscribers, as a successful real estate wholesaler, I get asked one question all the time. This question is: Do I need an LLC to get started wholesaling real estate? The short answer is: No you do not need an LLC to get started.
When I first started in real estate, I didn’t have an LLC for the first couple deals. I put these deals together in my own personal name and that’s the great thing about wholesaling real estate. You don’t need a lot – you don’t need a business, you don’t need money, you don’t need cash, you don’t credit or any of those things start wholesaling real estate.
What you will need is a drive to be successful, you have to put some effort into marketing, but there’s not a whole lot of complicated set up in order to get your wholesaling real estate business started. That being said, if you are going to be in the business of wholesaling, at some point you do need to have an LLC.
My recommendation would be to start your LLC after you get a couple of deals under your belt. Why? Because you need to get some cash flow in your business you will be busier and you’ll have more money to market to find buyers. You’ll also have enough money to set up an LLC, which will make it easier to start your business.
To recap, you will eventually need an LLC to get started wholesaling real estate, but only after you get a couple deals under your belt. Down the road if you decide to go into rehabbing or other types real estate, then you’re going to need that LLC anyway for those types of transactions.
To emphasize the importance of establishing an LLC once you get your business going, I just picked up a from a wholesaler whom I paid a $5,000 a signing fee to get a little deal here in my local area. We’re going to do a fix and flip and we should make around $25,000. This is just to show you I’m a professional real estate investor and I am doing real deals.
The main thing is, even though you don’t need an LLC to start, it’s good idea to get one once you get a couple deals.
Thanks for taking the time to read about whether, or not you need to set up an LLC before wholesaling real estate. If you’d like to learn more, check out my free video series, where I’ll show you how to go from Zero to $25,000 in 14 days flipping houses.