if you buy outside of an LLC you are unprotected and your personal assets are liable.
That said you may already have to use your personal credit in order to purchase.
If not, I would spend the $100-$150 it cousts in most states to start my own LLC. (and there are a jillion places on the web that will file for you for a nomilal fee) and sign my name as __ general partner for the LLC you set up. THis makes this a non recourse loan to you.
Just a thought
Randall
PS I did a short article on proper entities you might look up in the archives.
We purchase all our stuff first, and then we put it into the LLC. It's simpler to get a loan in your name than in an LLC's name; that's why we purchase then pass it into the LLC.
I haven't had any trouble borrowing money as an LLC, but I have had to use my personal credit to convince the lender to go for it. If you can I would keep everything within the LLC is possible.
Given the higher possibility of accidents during the rehab, I would not do this without a corporate shield (and making sure any contractors have insurance etc etc).
if you buy outside of an LLC you are unprotected and your personal assets are liable.
That said you may already have to use your personal credit in order to purchase.
If not, I would spend the $100-$150 it cousts in most states to start my own LLC. (and there are a jillion places on the web that will file for you for a nomilal fee) and sign my name as __ general partner for the LLC you set up. THis makes this a non recourse loan to you.
Just a thought
Randall
PS I did a short article on proper entities you might look up in the archives.
Hello,
We purchase all our stuff first, and then we put it into the LLC. It's simpler to get a loan in your name than in an LLC's name; that's why we purchase then pass it into the LLC.
Thanks,
OnTheWater
Your first one you can do it in your name, but get the LLC after you cash the check.
I haven't had any trouble borrowing money as an LLC, but I have had to use my personal credit to convince the lender to go for it. If you can I would keep everything within the LLC is possible.
Given the higher possibility of accidents during the rehab, I would not do this without a corporate shield (and making sure any contractors have insurance etc etc).