How Form 5495 Estates 2017-2023

The best legal entity for real estate investing is Hi, I'm Phil, founder of Freedom Mentor. I have been a full-time real estate investor and mentor for the past ten years. In this video, I will share important information to consider when deciding whether to set up an LLC or a corporation for real estate investing. Please note that I am not offering legal or accounting advice. It is essential to consult with a qualified attorney and accountant before making any decisions regarding the creation of entities for real estate investing. However, as someone with hands-on experience in the field, I will share insights that you may not find in books. Let's put ourselves in your shoes for a moment. If you are just starting out as a real estate investor or considering becoming one, you may be unsure about setting up an LLC or when it is necessary to do so. I will try to provide brief answers to some of these questions and then delve into what it means to be a real estate investor. To begin, it is crucial to understand that if you conduct business without setting up an entity, you are automatically considered a sole proprietorship under the law. When I was starting out and had no money, I did my first few real estate deals as a sole proprietorship. Attorneys and accountants often discourage this because sole proprietorships lack liability protection. In other words, if something goes wrong, such as a lawsuit, you can be personally held liable, and your personal assets may be at risk. In the beginning, I had nothing to lose, so the risk was minimal for me. However, if you have significant assets and plan to invest in real estate, you need to consider different types of entities and the potential...