Transferring Ownership of LLC

[Raphael Vargas]

Hello ALL.

I am a wholesaler about to make a 6 figure profit in DC.

I do not want to Assign my rights bc then it would show up on the HUD for the Seller to see and might scare him to back out.

I also can not do a double close bc it is illegal in Washington DC and it would cause me to pay 2x DC transfer Taxes, which would add to -25k.

I could use transactional funding, but that would cut into my profit substantially more than double close and would rather not.

The Property is under contract under a random LLC name I created for this deal.

I heard about just selling your LLC rights of ownership, How do I do this and does this normally show up on the HUD statement at closing?

Any Techniques you guys know about would really help.

Much thanks.

Raphael Vargas

[Randal McLeaird]

@rafael vargas

Hey Raphael - congrats on the deal. From the numbers, this is a much larger deal than the typical SFR wholesale deals I come across in San Antonio so this advice may not work in your situation. However, if your sole goal is to keep the seller from seeing your profit, the easiest way is to close the deal at a title company that will provide two separate HUDs. Title companies have the option of printing out a Seller HUD, and a Buyer HUD. All the figures are the same on each and the bottom lines are the same as if they were printed as a fully disclosed HUD. The difference is that the Seller HUD only shows the seller's side of the transaction so they have no idea what you have to pay, or if you got a loan, what your loan fees were. The same is true for the buyer's side, you never see how much the seller makes. Therefore, if you tack on a 1/4 mil assignment fee, the seller just see's their bottom line and nothing else matters. Ask your title company if they will do that for you and you have an easy, no cost solution. Again, congrats on a deal like that. I'd be interested in knowing more about it just for the story.