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LLC

Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 4 of 5): Using an LLC

by Stephani Davis | October 1, 2009

Today’s article is part four in a five part series, where I will be shedding light on the various methods available to close REO wholesale deals and get around the “No-Assignment” clause that most banks include in their addenda.

In weeks 1-3 I have discussed using simultaneous closings, quitclaim deeds, and double closings to get your REO wholesale deals to the closing table.

This week, I will be talking about using an LLC to wholesale your REO properties to your end buyer.

Using an LLC to Wholesale

If you decide to use this method to close your REO wholesale deals, you will be making your offer to the bank in the name of an LLC, creating the LLC if/when the bank accepts your offer, and then selling your membership/ownership in the LLC to your end buyer in exchange for your wholesale fee.  When using this strategy, you are not selling the actual property to your end buyer, but rather the LLC which owns the contract to purchase the property.

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Real Estate

Which is the Best Business Structure for Real Estate Investors?

by Greg Boots | April 8, 2009

Image by Oregon State University Archives via Flickr

Anyone who has closed on a purchase of real estate knows one simple fact: the legal profession kills a lot of trees. In a typical closing with traditional financing, all of this paperwork may seem excessive, but it is a necessary evil. The multitude of pages [...]

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Real Estate Deals

Series LLCs and Real Estate Investing: A Primer – Look Before You Leap, Though!

by Greg Boots | March 25, 2009

By now most investors are aware that Limited Liability Companies (LLCs) are designed to help insulate the owner (member) of the LLC from the liabilities that may arise on an investment property held within the LLC. What has drawn confusion and massive amount of debate is whether or not an investor should create a [...]

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Real Estate

The Asset Protection Misconception: Why Insurance Alone Isn’t Enough

by Greg Boots | March 18, 2009

“Why did my financial advisor tell me that in order to achieve asset protection for my investment properties, I only need a general liability policy?” This is a question I am consistently asked by investors when I am speaking throughout the country. Don’t get me wrong, I am a huge advocate of [...]

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Real Estate Investing

Land Trusts and Asset Protection, a Primer

by Greg Boots | March 11, 2009

There has been much published in regard to land trusts. However, many real estate investors are completely oblivious to the fact that the land trust, in and of itself, provides absolutely no asset protection. Don’t get me wrong, land trusts are great vehicles for privacy, but privacy will only take you so far. [...]

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Real Estate Investing

Wholesale Real Estate Transactions: Avoiding Dealer Classification

by Greg Boots | March 4, 2009

When most investors think about business planning for their real estate investments, their main focus tends to be strictly on asset protection. However, there is a genuine need to also focus on potential adverse tax consequences depending upon the type of real estate transactions that you have targeted for your investing strategy. Wholesaling properties falls [...]

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Landlord Tenant

Real Estate Partnership Questions

by Joshua Dorkin | November 16, 2006

I was talking to some friends who were looking at purchasing a condo together. They wanted to know what I thought about the premise of them owning a rental property as partners.
Should friends or family purchase rental property together?
I try to advise people to stay away from partnering with friends or family, [...]

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Pinnacle Development Partners

U.S. Securities and Exchange Commission Charges Pinnacle Development Partners, LLC With Fraud

by Joshua Dorkin | October 11, 2006

Here is an update for everyone with the latest news on Pinnacle Development Partners LLC. According to Reuters (full article), the U.S. Securities and Exchange Comission (SEC) today filed fraud charges against Pinnacle and its founder, Gene O’Neal, claiming that it operated a ponzi scheme.
“The U.S. District Court for the Northern District of Georgia [...]

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