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Start a business? Should I start investing as myself or should I start a business?

I am looking to start investing in real estate soon. I've been reading & doing research for a few months now. I realize I still have a lot to learn, but I think I'm ready to start getting my feet wet soon. As an individual I have good credit & still have my day job so steady income. I'm confident I will have no trouble qualifying for loans (had no problem when I bought my home 2 years ago). I'm trying to decide if I should start investing simply as myself, or should I start a business and do my investments through the business? I would like to transition into full time investing in time, if that makes any difference. Any info & advice would be much appreciated :)
  • December 16 2013 - US
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Answers (3)

A real estate attorney should also be consulted.
  • December 18 2013
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You should speak with your accountant to determine what's best for you.  There are lenders in PA who will lend to an entity.   You can find lenders who work with investors at the local real estate investor group in your area. 
  • December 18 2013
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Hello amysilverman86, 

I unfortunately do not have a real grasp of the benefits of having your holdings in an LLC instead of directly in your name.  What I can tell you, however, is that many (if not most) mortgage lenders cannot make loans to corporations but must lend to individuals.  If your real estate empire is going to be built with mortgages, the path of least resistance is keeping it in your name. 

As I said, I am not all that well versed in this, so I would suggest taking this question to an Attorney and a CPA to get their input. 


Hope this helps! 


Thanks,
Aaron
  • December 16 2013
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