Another newbie question - Posted by Jerry

Posted by SueC on June 22, 2001 at 12:23:35:

If you are new and haven’t done any or many deals, it won’t matter what form your entity is, no one will lend to the entity anyway without personal guarantees or co-signing until the entity shows some income.

Talk to your accountant, in my opinion how you want the tax issues to play out will make 75-80% of your decision for you. An LLC is less paperwork than a C-corp, and some deductions are different, so it will depend on your long term plan.

Another newbie question - Posted by Jerry

Posted by Jerry on June 22, 2001 at 07:19:42:

A friend and I are just getting started as REIs. We’re debating whether to form a partnership, LLC or corporation. Our strong preference is LLC, however, we’ve heard that buying/selling real estate is difficult for corporations. Is that a real problem? Are there other problems/issues with doing real estate investing from an LLC we should be aware of? I’ve read Bill Broncheck’s stuff–makes some sense but I’d like to hear from someone who’s actually “done the stuff”! We’ll be grateful for any insights.