A lot of you are Rich Dad fans and have hear Robert Kiyosaki or Garrett Sutton (Rich Dad legal advisor) suggest you set up an LLC or limited partnership for your real estate investments. One of our students, Karie, also a Rich Dad fan, asks the following great question about what to do next:

Q: I am a new investor, setup an LLC like Robert suggested and now don't know where to start. All our money is in our names not sure how to roll it over to the company. We purchased our first home in September, rehabbed it and have renters in the home with a cashflow of about $250. All money that was out of pocket came from our current account. I was looking into getting Quickbooks which I feel will benefit us. I have been keeping all receipts for our expenses and now we have revenue. How do we get started to make sure our first year taxes go smoothly.

A: First, you need to set up a bank account within your LLC. All income and expenses related to your rental property should go through this account. Next, set up Quickbooks, just as you were thinking. Then, I suggest our Basics of Bookkeeping and Basics of Quickbooks courses to get you headed in the right direction. We also have a great course called Year Round Tax Planning that we created just for the new investor. You can find all of these courses on line at www.provisionwealth.com/products.

Warmest regards,

Tom