What business entity do I need to wholesale real estate? Do I need an LLC, how much will it cost and how do I set it up?

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What business entity do I need for wholesaling?  Do I need an LLC, how do I set one up for real estate investor or wholesaling in Indy?

Summary: Indy real estate investors and wholesalers: how to set up your LLC.

I will break this up into two questions one is why you should set up your LLC and and how to do it and then in the next video I’ll go over how to do deals if the seller (like a bank for example) says that the offers are non-assignable or with NO assignment.

Sometimes with REOs, banks, overseas deals, etc. they will say they only accept non-assignable offers and you can still wholesale or assign them but first you need to understand the LLC part.

What business entity can you use?  A Limited Liability Company is a good start, here’s why you want to use a business entity or an LLC for your real estate business:
– First you have legal protection so you never take a deed in your name, you have “corporate veil” and your liability or things at risk is limited to what that LLC owns
– For somebody to “get you” they would have to “pierce the corporate veil” for ambulance chasers or greedy sue-happy folks they will easily go over after somebody with no veil, but a shady attorney will want thousands or tens of thousands  in court  an ambulance chaser will usually ask for more money to sue you if you have the veil set up so this discourages needless lawsuits
– Tax benefits, you don’t know if something is a write off by looking at it, a pizza, computer, or a couch they can ALL be write offs if a documented business purpose
– You can set up an LLC for about 150 and in less than a week
– This is also a great tool for wholesaling on “non-assignable” deals like I explain in the next video

Step One: Come up with your name and do a quick check for similar names or restrictions on names, I went over how to do this in the other LLC video.

Step Two: You can use a site like HowtoStartAnLLC.com or if you’re in Indiana like me you can go to IN.Gov and this link I’ll include below so make sure you always read the descriptions and go to the site to get more info:
http://www.in.gov/sos/business/2428.htm

Step Three: Your state will have an LLC has a filing fee, in Indy it is $95 in places like Mass or Nevada it can be $400-$500 on average you’ll pay about 100-150.  File the documents.

Step Four: Name your registered agent: This is the person that will get info regarding the LLC they may be called the statutory agent as well.  This is why you usually do NOT want to set up your first LLCs in another state because being a foreign agent or hiring a local one will cost money and other fees like annual recordings can add up to.  You may have an annual fee but try to avoid those.

Step Five: Get your EIN, this is like a Social Security number for your business.  Once you get your LLC info to get your Employer Identification Number go to:
IRS.Gov/EIN
This is free and get in 10 minutes and you can even it do over the phone.

Step Six: Take your LLC info and now with your EIN you can open a business checking account, there are several that are free.  First try your current bank if not I’ve done with with Chase, PNC, Aspiration and others I have listed several more below.  Get a FREE account especially you are just starting.  Make sure you do ACH direct deposits so you can get/charge money from other accounts.

Step Seven: Get your Nerd Herd together, you will want to start with a bookkeeper, an accountant, a tax adviser, a CPA, an attorney or SOME body to track stuff and keep you legal.

You can hire a really good person for less than $30/hire part time I had one and he bills me for two hours a month.  One hour he goes over all the numbers and the second hour we have a phone call once a month.

This is a BIG secret that is worth more money than you will ever pay me:
– Train your bookkeeper on the numbers they should track and report to you, aside from the obvious you want to know how much are you paying per lead, per conversation, per appointment, per voicemail, etc. then compare that to last month
– I learned this from Azam and it has been a life saver because I get on the phone once a month and he tells me what is making the most money and what is not so I know exactly what to focus on
– As you many of you know it was less than a year ago I was at zero and now super THANKFUL to be well past six figures a month and it NEVER takes him more than two hours a month, I’m still only getting billed for two hours LOL.  Now he wants to charge me nothing and have me train him to do this LOL!

Note: the things like the Operating Agreement or the Organization Paperwork With the State, etc. I have a template for all the Midwest states including Indiana so if you want just email me and I can sent you what I use.

Also if you want my attorneys or legal team to set this up for you just send me an email and I can forward it over they do it cheap but you should at least know the steps so you can speak about it intelligently when investors ask.

That’s it in the next video I’ll talk about using this LLC to assign deals that are not-assignable.

Make sure to digest everything here at BigReia.com and get the best income ascension and social mobility training on EARTH.

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

The post is HERE.  There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list.

Go to BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Social Mobility for you and yours… 

Thanks so much!  = )

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