All Forum Posts by: Jesse LeBlanc

Thank you @Crystal Smith for sharing this for others here. :)

@Killy W. doing an assignment is always best, will save you money vs double closing.  However, there are situations and reasons for double closing and everyone has different thoughts or reasons, so i'm not here to tell you one way or another what is best for you since you know your buyer, seller and you better than anyone else.

If you do choose to double close and ever use Transactional Lending, i'd LOVE to be able to step in and help out anytime. To your question about an LLC or not, it DOES NOT matter. It will be taxed as ordinary income either way and flow through your personal taxes. You can close in your personal name or with an LLC. If you're new, I DO NOT suggest you get an LLC right now. Just an extra expense that isn't needed until you know you're consistent with deals then you might want to look into an LLC.

When you do, just talk with your CPA to make sure they set it up correctly for tax purposes.

You’re looking to becoming a transactional lender or need transactional lending?

If you're trying to start lending, do you mean for EMD only or for full amounts on double closing?

Good morning Nia, you can visit my website in my signature. We can provide you with a legit POF. I don't offer EMD lending though, but I do fund 100% of the AB transaction in a double close if you ever are in need. Feel free to email or call us anytime. :) I hope you have a great rest of your Sunday :)

If you plan on assigning a contract, you can always get a bank statement or other POF from your end buyer too.

Good morning Guillermo, you can visit my website in my signature. We can provide you with a legit POF. I don't offer EMD lending though, but I do fund 100% of the AB transaction in a double close if you ever are in need.

Yes sirrrr, no problem at all. Best of luck on your deal and I hope all goes well!!

 Even if you assigned the deal vs double closing, legally the end buyer is supposed to 1099 you (although they never do) and you're supposed to report that assignment fee as ordinary income whether the buyer issues you a 1099 or not.  But once you double close, blind hud or not, profit remains the same and taxed as ordinary income, or you can call it short term capital gains, same thing for the IRS.

 yes sirr, 100% have to pay taxes on your profits there.  

Yes, this will be taxed at the highest rate, ordinary income, identical to a flip. IF it were a legit purchase with the full intentions of keeping as a rental and in the right LLC and tax structure (and could prove if audited) then it could be different on your taxes in the eyes of the IRS. But if you're wholesaling it, it's 100% ordinary income, same as a flip or as some will still call it short term capital gains. Taxed the same.

Good morning @Shane Lyons, I hope all is well. I think you already knew this, I offer Transactional Lending, but I don't do "gator" EMD lending. I lend the full amount so I won't be of much help to guide you on the other process. I imagine though if you do offer EMD lending, you better make sure you have full control of your money and stay on top of the closing team and most importantly stay on top of the wholesalers because I'd hate for you to lose your EMD by not having it protected with the right paperwork or by not babysitting the wholesaler.