Finding a buyer upfront, making offers in a newly formed entity in which you name your buyer as a share holder in the company then sell your shares/interest in the company for your "wholesale fee" is also legal in all 50 states and no assignment is needed as the buyer is you and your end cash buyer/partner.

@Landon B.If the S-corp earned income in 2019, then yes, the Members/Shareholders will be required to report the income on their individual tax return.

Also, neither is well suited for repeated flipping as it is considered a business and subject to taxation inside of an IRA on UBTI.A Rollover as Business Startup (ROBS) plan would allow you to use tax-deferred retirement savings as a shareholder of your personal flipping business. 

With that comes a lot of costs though.You can get licensed, that makes it legal too but you still must disclose everything CA requires you to disclose and must not lie to the seller claiming partners or the like.You can have your buyer already, then actual partner with that buyer, form a new entity with you both as shareholders/owners, and in escrow and at closing, sell your ownership shares to your buyer for your “wholesale fee”.

You can then ensure that any decision of consequence such as sale, refinance, issuance of shares, mortgaging requires a super-majority vote of 90% of the shares which effectively gives the minority shareholder a veto over any decision.

@Casey Conner - all of that will need to be in the operating agreement and shareholder/loan agreements as well. 

Then, shareholders are taxed on whatever income they receive from the C-corp.Do a quick google search on "C-corp double taxation".In an S-corp or LLC, the company is not taxed on its income. 

My income and credit reports were fine and I qualify for the amount I'm seeking but...I'm the majority shareholder and managing member of an LLC which consolidates some past businesses which failed and the LLC holds the loans that were not repaid, (including a loan to me).

I did find an article that states:You qualify for an income tax deduction equal to 20% of your rental income if: you operate your rental business as a sole proprietor, LLC owner, partner in a partnership, or S corporation shareholder, andyour total taxable income for the year from all sources after deductions is below $315,000 if you’re married filing jointly, or $157,500 if you’re single.We own 3 rental properties, all single family homes with the titles in our names.

(Code Sec. 461(l)(3), as added by Act Sec. 11012)In the case of a partnership or S corporation, the provision applies at the partner or shareholder level.