buying a property under LLC

[Andy Lightner]

i am looking at forming an LLC for an REO property and then wholesaling the LLC to an end buyer. how easy is this, does it make sense to do, and what, if any, are the tax implcations on this transaction if done as a double close?

[Andrew Massaro]

IMO, the only time you want to go this route is when the bank has a "no flip" clause in their contract, stating you can't transfer title for 30, or 60, or 90 days. This is a common practice for wholesalers to get around such a stipulation. However, if you're just looking to double-close an REO, which has no stipulations about how quickly you can sell it, just double-close. Forming an LLC just to control costs, which should be minimal anyway, is not in your best interest. Keep it simple. This route makes an easy transaction much more challenging... for little, if any, gain.