For your first investment real estate purchase, before creating an entity such as an LLC, I suggest getting the property under contract in your individual name. The contract should have a sentence that the “Buyer may assign the contract to an entity owned in whole or part by Buyer.” A week or so before closing, the LLC can be formed online. The title company will need that week to update the Title Commitment for the LLC.

The disadvantage of forming the LLC before you have a property under contract is that you may not get a suitable property under contract and then you have an entity that requires a tax return, the cost of setting up the LLC, the recurring annual State fees, and accountant fees.

Most importantly, I suggest having a real estate attorney draft or review the contract, and follow the transaction through to closing. It’s like the old Midas Muffler commercial “Pay now or pay later.”

Also, if the LLC has 2 or more Members (owners), you should have an Operating Agreement that among other things prescribes buy-out upon death, restrictions on the transfer of Membership interests, duties of the Members, and any other concerns of the Members.