Wholesaling: Sell the LLC or Sell the contract?

[Khari F.]

Which do you prefer and which is simpler? I assume selling LLC is more complex for newbie since you have to structure LLC as manager managed and requires Manager Resignation and Appointment of Manager documents. or is there an simpler way. Thanks ahead for any input.

[Joe Villeneuve]

It's not that hard/complex to sell an LLC. A lot less paperwork than selling a property.

[Brian Jordan]

@Khari F. I would say that the biggest challenge for me was getting a buyer to understand the concept and the reasoning behind it. I've only tried it twice and was successful both times but it's definitely more involved than a simple assignment. I would definitely put that out there with your initial advertising of the property so it's not a surprise to the buyer after they've looked at the property and invested time in to it. It will probably be easier with buyers you already have a relationship with as well. Best of luck!

[Corey Schneider]

Make it that the LLC was created for the one property that you are selling. One great advantage in my market place, is that now the buyer won't have to deal with the C/O, as the seller had to deal with that when he bought it.

[Khari F.]

@Brian Jordan Thanks. I see how that could possible throw a wrench and delay the deal at last minute. 

[Michael Ablan]

@Khari F. - Selling the contract is definitely the easiest. All you need is a contract with language allowing it to be assigned. The only reason I know of to sell an LLC is if you're buying an REO which forbids you from assigning the contract

Good luck!

[Brandon Krieg]

I have also typically assigned the contract directly, rather than selling the contracted LLC. I think there are advantages to both versions, as pointed out on this thread.