Ok, After I talked with my accountant I need to do a few things before I buy a house to rent out to someone. It sucks because this stuff is complicated for me, it makes me really want to go to school to learn more about this stuff :-s
But anyways, the few thins I need to do are in this order…
1. Get prequalified for a mortgage
2. Get a 401k set up
3. Get a LLC set up
4. Look for houses 
Getting prequalified for a mortgage loan will be easy. I have a meeting with the people tomorrow or Monday. I probably wont even use the mortgage, its just a good thing to have when you going to look for a home. haha
The 401k is the hardest part for me. Like most 19 year old, I don’t get how it works 100%. I get the basic outline. Such as - I put money aside for my retirement and I get it when I’m 59. I can invest the money in the 401k where ever I want, such as mutual funds, CDs, Bonds, and even real estate. The hard part is that I need a lawyer to set it up. Which is going to cost me $1800. I am a tight ass and don’t want to set it up like that. My bank can set it up for free, but that’s just a IRA, I need to have a profit share or something. That’s where it gets confusing for me :-s, I think i’m going to go buy a book on it tonight
The LLC is also very easy, just call my lawyer and have him set one up for 400$. The LLC will protect my real estate assets for me. I will own 2 companies - developer hut inc and blah blah LLC. yay!
And then looking for a actually house is also going to be a tuff part. I need to find one that most people look over, since im going to fix it up a little bit. But that part will be fun im very exited…
I will keep you guys updated… any suggestions on the 401k? Thanks
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Here’s a question, you are starting an LLC for your realestate investments but what about developer hut “inc”. Is it an actual corporation at this point?
If so, how difficult/expensive was it to set up? Did your lawyer pretty much take care of everything? Thanks.
Im starting a LLC to protect my real estate assets. Such as the rental property. So I will have 2 companies, one will simply protect my assets the other one will be my form of income.
The developer hut inc is a corporation. It cost me 1400 to set it up, the lawyer does everything, he even helps with the corporate meetings and such. Im using the INC for tax reasons, which is helping me so so much.
The llc is actually 100$ to set up, but im going to have my lawyer do it, he charges 400$.
Its not that difficult to have a lawyer do it, but it is expensive. I wouldnt recoment a inc if u dont make over like 100k a year, a llc would be fine for you if u make less than that…