Updated over 9 years ago on . Most recent reply
Using a letter of intent/1099 with a cash buyer
Hey guys, I've sent out my first mailer and I'm having trouble deciding on what type of contract to use for my wholesale. Here's my issue:
Assignment contract: I live in the Bay Area, price transparency is super high and owners will be pissed if they find out I'm just marking up their properties.
Double close: not crazy about the idea of paying closing costs twice
LLC transfer: Possible - haven't explored this a ton. But CA has an $800 Annual LLC franchise tax.
I thought about working with a cash buyer on a 1099 contract basis. Or possibly using a letter of intent, stating that if this property closes, then the cash buyer compensates me with X.
Any suggestions here? Just trying to keep things legal and I'm not sure which of these are in the gray area/how to keep things smooth with the seller.