can i form an llc before i close on a flip under contract

2 Replies

My brother and I are currently waiting to close on a house the we intend to flip.  We close on the property on September 14th, this is our first flip and the more I read on the site I feel like we need to form an llc to keep ourselves protected. 

The question I need answered is there a way for us to form an llc and transfer the contract to the llc so when we close we don't have to put it in out personal names then transfer ownership after

any help would be great

thanks

If your purchase contract doesn't prohibit assignment, then you can simply assign the contract to your LLC. Just let the sellers know why you're doing it so they don't get nervous. If your contract is Not assignable, you'll need the seller's permission....do an addendum changing the buyer. My personal thoughts are the whole "must own in an LLC" is a bit overblown though. Adequate insurance is better.

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