Do You NEED A LLC To Wholesale Real Estate?

Question: “Do You Need A LLC To Wholesale Real Estate?”

No, of course not.

Of course you don’t need a LLC to wholesale real estate.

You don’t need LLC to buy candy or to sell candy, you don’t need LLC to trade.

It’s just advisable at some point.

Once you start doing deals that you have the proper corporate structure based on your state and in your particular peculiar situation,

…to make sure you have those things in place so that you’re protected from unnecessary liabilities, that’s all it’s for.

LLC has never been a requirement to wholesale deals.

It has been only useful for you to protect yourself from liabilities when it comes down to just running the business.

Nothing particular about wholesale just running a business in general.

If you have a LLC, Limited Liability Company, that’s what it means.

It limits your liability but if you haven’t learned how to generate leads much less doing a deal and you haven’t done that consistently long enough,

There’s no reason for you to be stuck on that.

A lot of people get stuck on that.

Now, if you file your LLC, you created your logo and your websites, and you do all those things before you start to do deals,

…there’s nothing wrong with that.

I’m just letting you know it doesn’t guarantee you’re gonna get paid.

Everything you just did is just maybe, hopefully for the future you find them useful,

But most LLCs that are created, did you know that are useless?

99.99% will never be used to make money.

That’s because LLC does not make money by themselves.

You use LLC to protect an existing business.

So the first thing you wanna learn is to learn marketing, learn sales, learn how to close some deals.

PREVIOUS POST: How Do Real Estate Wholesalers GET PAID?

Learn this process.

Learn this process and learn how to automate this process.

Then once you cause your first deal, then you can now start looking around, and you could literally go online and file a LLC.

It only cost $100 or so.

So if you close your first deal and then you file a LLC, it’s not too late, Okay?

But anybody that’s selling you LLC out there, maybe they’re selling you a package or something like that,

Of course they will tell you, and they will sell you on the idea that it should get those things in police.

It’s not necessarily true.

That’s coming from somebody who filed, I don’t know how many LLC I filed before I actually started making money,

TRENDING: 3 Functions of a Real Estate Wholesale Website📍

…but I’ll tell you right now, because we’re ambitious.

People like me who are ambitious from the very beginning.

So the first thing that comes to mind is, “you know what? Let me go from my company”

Even the first company that I formed, I did it all wrong anyway.

I think you should learn how the process works and learn how to market.

You learn how to generate leads, learn how to close deals, and then somewhere in between that you can find the time to file a LLC.

All those corporate structures, you will still find that once you start making a certain amount of money.

HAVE YOU SEEN THIS: More Video on our YouTube Channel

You still have to talk to better experts and clean those things up anyway.

You still have to, that’s just the way it works.

So, Do you need a llc to wholesale real estate?

No, it’s not a requirement to wholesale real estate.

It has never been, it will never be.

You don’t have to worry about that.

I would rather spend my time learning how the market, learning the process and then executing my first call.

Setting up my first ad, generating my first lead, talking to the first lead and saying,

“If I’m enjoying the process of talking to a homeowner, who can potentially sell to me”,

…that’s what you should be talking about right now.

---

Unlocking the Secrets of Wholesaling Real Estate: Do You Need an LLC?

So, you’ve heard about this magical thing called wholesale real estate.

It sounds like a mix of art and science, doesn’t it?

Well, that’s because it is. But let’s cut to the chase – do you really need an LLC to dive into the world of wholesaling real estate?

The Straight-Up Answer: NO.

You don’t absolutely need an LLC to kickstart your journey into wholesale real estate.

But hang on, there’s more to this story than a simple yes or no.

Understanding Wholesale Real Estate

Before we go any further, let’s break down what wholesale real estate is.

It’s basically the art of finding distressed properties, locking them down with a sales contract, and then passing on the rights to an investor who’s either looking to flip the property or keep it as a cash flow investment.

There are 5 fundamental steps in this game:

1. Data
   This is where you dig into a database of distressed properties, kind of like a real estate detective.
2. Contact
   You’ve got to track down the owner of the property and kickstart the conversation. It’s all about making that first move.
3. Leads
   Once the owner expresses a desire to sell, you’ve got yourself a lead. This is where things start getting real.
4. Contract
   Now comes the negotiation part – striking a deal that’s roughly around 50% of the after-repair value of the property, considering repair costs.
5. Deal
   Finally, you find an eager investor willing to take the deal off your hands for a sweet assignment fee. I’ve pocketed anywhere from $10,000 to a whopping $82,000 on these assignments.

To LLC or Not to LLC?

Okay, let’s talk LLC.

While it’s not a must-have for your first wholesale deal, it’s a smart move to consider down the road.

I mean, who doesn’t want to protect their hard-earned cash, right?

I got my LLC right after my first $10,000 win.

It’s like a shield for your earnings.

Money Talks: The Wholesaler’s Dilemma

Now, here’s the real talk.

One of the biggest headaches for wholesalers is having enough money to make a splash in lead generation.

You see, if you want to turn this into a 7-figure business, you’ve got to be making money even before those deals start rolling in.

Marketing isn’t free, my friend.

Making Bank Before the Deals

But worry not, there’s a game plan.

Three simple steps, in fact, that can set you up to rake in cash even before you close your first deal.

And I’m not talking pocket change – we’re talking a whole new income stream, potentially in the six figures.

If you’re curious about these steps, I’ve got a treasure trove of information in my three free books and an eye-opening webinar.

It’s like the golden ticket to maximizing your income potential in wholesale real estate.

So, there you have it – the lowdown on whether an LLC is a must-have for your wholesale real estate journey, plus a few extra tips to grease the wheels of your success. Now, go out there and start hustling those deals!