Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Wholesaling
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 9 years ago on . Most recent reply

User Stats

303
Posts
80
Votes
Dustin Verley
  • Wholesaler
  • Newark, DE
80
Votes |
303
Posts

LLC Entity Before Wholesaling

Dustin Verley
  • Wholesaler
  • Newark, DE
Posted

This, I believe, has been a much-discussed topic, however, couldn't find a solid answer and would simply like some reassurance.

So, I'm looking to start wholesaling, eventually getting into other strategies of REI at a later date, but am curious how wise it would be to create an LLC prior to wholesaling. Now granted, I've heard two circumstances here:

Circumstance A: Create an LLC to use on the contracts so as to limit any personal liability.

Circumstance B: No need to create an LLC as wholesalers typically do not hold any property or possessions long enough for a suit to incur. (Not really sure how this is, but I've read this on a couple posts around BP)

Conclusively, I considered just doing an LLC prior to doing wholesaling to limit my liability as, contraire to Circumstance B, if I were to put my name on a contract, it could still open a gateway to personal liability.

Would love input and feedback on this matter. 

Most Popular Reply

User Stats

13,398
Posts
19,435
Votes
Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
19,435
Votes |
13,398
Posts
Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
Replied

I use LLC's, but a different way. I have a number of disposable LLC's at my fingertips at all times. The offers are made by the LLC. When I have an accepted offer, to wholesale it, I just sell the LLC to the new investor...and they close as the new owner of the LLC.

Loading replies...