Taking possesion of property - Posted by Dave

Posted by stacy on May 31, 2000 at 10:49:16:

I understand your point about delays associated with details of setting up a corp, LLC etc… but from everything I’ve read on this site, the liability of putting ANY property in your name is NOT recommended. In fact, I’ve seen more than a few posts that say it’s quite dangerous, especially if you own your home or any investments that can be gobbled up by a greedy lawyer. Don’t these all come into play if your sued?

I’ve done some flips and I’m in the process of choosing between a corp or LLC before I start doing lease options. Since L/O are one of the most common form of creative deals tenant buyers sue over, should I not be prepare for the fight?

Taking possesion of property - Posted by Dave

Posted by Dave on May 30, 2000 at 20:45:31:

Hi all,

I am currently looking at doing my very first deal. My only problem is that at this time I do not have enough cash to set up my business entities (c-corp with LP). Would it be ok if I took possesion of the property in a land trust and then purchased liability insurance for the time being and then transferred title to my business entities at a later time when I have them set up? or is this idea goofy and I should just wait till I have everything set up properly. Help!

Re: Taking possesion of property - Posted by Rob FL

Posted by Rob FL on May 31, 2000 at 09:52:25:

If you are just starting out and don’t have a bunch of assets that need protecting, you can probably get away with the scenario you described. I was investing in RE for almost 3 years before I formed my first corporation. I probably waited a little long, but the important moral for you is to get out there and make offers.

You can have all the looks of a business-- office equipment, business cards, even a corporation – but you don’t really have a business unless you have products/services and customers (and hopefully some revenue).

Re: Don’t wait to get set up! - Posted by Lori Samson

Posted by Lori Samson on May 30, 2000 at 22:03:43:

Something I teach in our course is that if you wait until you get totally set up you are missing out on a lot of deals. If you don’t own any real estate then how much can someone get to if they sued? Let yourself evolve into the need. After you start accuiring real estate then you need to start protecting yourself. I waited probably too long before I got set up but, not if you haven’t anything yet. It is my opinion that the people who go buy all the toys and spend the time to try to get everything set up before they ever start find them selves all ready to go with the fax machine, cell phone, pager, business cards, letterhead, file cabinets etc., etc., etc.! Then they have nothing to do but start. They sit staring at the phone and then can’t seem to find a place to start. So, they find somemore to do to get setup. Get out there and it all will happen sooner or later. Lori

My husband would differ because he got everything ready first and then started but I have found more to do the other!