Newbie With A Question About LLC And Wholesaling
Let me give everyone a little bit of history. I've been thinking about and talking about investing for years but never knew how to get my foot in the door. Well my foot got "put" in the door earlier this year when my friend ended up in foreclosure and me not wanting to see her out on the street, I bought her house, now she is my tenant. I made only 8k off the deal because since she was going to be my tenant and hopefully acquiring the house back in two years, we kept the loan amount to where she could afford to stay there. Even with my loan on the property there is still 20k in equity in it. I bought two more properties the exact same way. So over the past 6mo I've made about 25k free money.
I've decided now that I no longer want to do pre-foreclosures, I don't want to deal with ****Must Reach Senior Investor status before posting URL's*** want to buy, refi, then sell.
Here is where I have questions. I've submitted my paperwork for my LLC but I've been reading on this site that you should have a separate LLC for each property with there being a main LLC entity. How do you do that? I understand the purpose but the process stumps me.
Also, I have a property I looked at yesterday, it's listed at 50k, its Bank-owned but in need of some work, I don't even want to work on it unless I can't sell it, then I would rent it. It can appraise at 79,9K so I want to refi, and sell as is. Does anyone see any downsides of doing this?
You guys are really great, I've gotten so much info from you.
thank in advance
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