INVESTORS’ CORNER: Decision Paralysis

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Multiple times per day, we field questions regarding LLC formation, tax consequences and other various worries that a young/student investor might have.  A young investor with Google as a weapon worries about which state to incorporate, whether an LLC should be their registered agent and 43 issues regarding Corporation formation alone.  After laboriously establishing their LLC, they spend 3 months figuring out which contract they will use, before stressing themselves out regarding tax implications or hundreds of other worries.

 After a 6-month process, they have given up on the entire process or they have passed on dozens of deals that could have launched them into this career.  It is awkward advice, as an Attorney, to tell someone, “Do, rather than worry about consequences” but we believe it has more value than our sample student above.

Venture forth:  do. Find a good ‘buy’ or deal and figure out what to do before you figure out how to make money or how to pay your taxes.  If you’re one of thousands of investors sitting on the sidelines: ignore all of the roadblocks you could manufacture for yourself and get involved in the game before worrying about the 100 details.   Once you’ve found your first deal, you’ll learn who the players in the market are and you’ll have practice experience on how to structure the deal and move forward. This experience is far more valuable than the “arm-chair” theoretical experience that Google can provide you.   In short: as long as you aren’t stealing someone’s money, there are very few things you can do in real estate to get yourself in trouble. 

Your inaction is the largest impediment to your success.  Don’t tell yourself that you can’t become involved in the investor world because you don’t have your LLC ready, or your contract perfected.  Not even lack of funds should worry you. If you find the right deal, funding will easily follow.

Go forth:  make your future and figure out the details, after you’ve found a profitable deal.  I’ll help you do it. I’m an e-mail away, whether you need a title search or hard money lender or simply need advice.

Harry Marsh

Harry Marsh is a member of Metrolina Real Estate Investors Association, which provides education, mentoring, and networking for real estate investing in the Charlotte region.  For more information, visit www.MetrolinaREIA.org. Harry Marsh is a real estate attorney practicing in/around Charlotte, who helps many of the young investors, and can be contacted at: [email protected].