Can utilize an LLC when a property is restricted from being sold?

[Maurice Hawkes]

I am new to investing and BiggerPockets, in the DC area. I went to a meetup and learned, when wholesaling a pre-foreclosure, there are restrictions on reselling the property within 90 days. To get around this I was informed that I could create an LLC, and resell the LLC in place of the property. I'm wondering what the tax and administrative cost implications are to this and if this is possible?

[Will Barnard]

You are confusing one thing with another.
In a pre foreclosure, meaning the lender has filed a notice of default and possibly a notice of sale, and if the property lacks equity, then the bank will have to agree to a short sale. You as a wholesaler (I’m making this assumption since you posted in the wholesaling forum) can not assign the contract because banks doesn’t allow assignments in their purchase contracts - they have specific language to this effect. So to wholesale it, you will need to be a bit more creative which would require you to have your buyer lined up in advance for this deal.

If you are talking about the 90 day deed restrictions imposed on buyers and sellers for Fannie and Freddie - those are NOT preforclosures, those are REO properties (bank owned) which state that the new owner may not resale that same property inside of 90 days for more than 20% more than it was purchased for. Two totally different things here.