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Updated over 14 years ago on . Most recent reply

User Stats

41
Posts
3
Votes
Brandi Paul
  • Residential Real Estate Broker
  • Orange County, CA
3
Votes |
41
Posts

Option Contract- Purchase as individual or Business?

Brandi Paul
  • Residential Real Estate Broker
  • Orange County, CA
Posted

Hello,

After some months of research and preparation we are ready to try to get an offer in place for a short sale flip and had a question about the Option to Purchase Contract. I am not sure if there is a simple answer to this question or just Pros and Cons of each, but here goes:
Is it best to put the investor's name as the buyer or the investor's business (i.e. in LLC or Corp)?

I am not sure if using one vs the other would make any difference in the eyes if the seller's Lender in terms ease of the deal, acceptance, etc.

I appreciate any insight that may be given.

Thank you!
Brandi

Most Popular Reply

User Stats

1,018
Posts
802
Votes
Scott Hubbard
  • Rehabber
  • Tucson, AZ
802
Votes |
1,018
Posts
Scott Hubbard
  • Rehabber
  • Tucson, AZ
Replied

I use a state specific contract in California because the option contract tends to create confusion with Brokers there. I use an addendum which essentially turns the REALTOR approved contract into an option contract. It has has the state mandated disclosures to the seller as well. Your welcome to look it over, just PM me.

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