Wholesale using LLC - Advice...

[Cliff R.]

Good Morning, I'm a part time Realtor trying to get into wholesaling (I have another full time job). I have my first property under contract, and have a buyer for it. I created a quick llc and would like to sell this investor/buyer the llc to avoid a double close. I have no idea what I'm doing :) I don't want to chance the deal falling apart at closing, by adding this new buyer/member to the llc and have them sign at closing. I know that some title companies would have an issue with that. I was thinking if I close in this llc, and use the member that originally signed the sales contract (my friend), I could turn around right after closing and take his info off of the llc and add the new buyer/investors info to the llc, collect my fee, and transaction complete. So basically I would add this member after closing instead of before closing to avoid any unwanted attention or red flags from title or the seller. I'd loved to hear from a wholesaler that does this... I was also looking for a solid operating agreement specifally designed for this purpose, if anyone would be willing to share (I know I should probably have an attorney draw one up for me). Anyways, I think this would be a great way to make a living. If I could wholesale two or three deals a month, and also get paid a realtor commission on each one, I could quit my job at Conoco. Great site, thank you in advance for any help.

[Savannah Leigh]

I have done this a few times. One transfer tax, not two is a big reason'

use a good title co, maybe an attorney. let them open the llc, and do the transfer

that way they can attest the LLC was sold BEFORE closing (even if same day) so that the transfer tax issue has backup...this i was told by my atty

also, it does work around the assignment clause BUT you will need the new owner to sign an authorization doc allowing you to sign the sales docs for his (now his) company. the bank started with you, the first contract was signed with you, they dont want you going away.

it was painless.