Best Wholesale Entity?

[Chris T.]

I was considering using an LLC for my wholesale business, but it seems that I would have to pay capital gains tax and self-employment taxes with an LLC or a Sole Proprietorship.
And, since I'm not investing, buying, and holding property then I won't really need the protection of an LLC. A sole proprietorship is also cheap!

Any thoughts?

[Derek W.]

Greg, if the offer is written under a trust and beneficial interest is transfered during escrow from me to the new buyer, then the house closes under the same trust, there has technically not been a transfer of property or a "wholsesale flip." So your wholesale fee would be a third party service fee (like a home inspector or termite company would charge during escrow) would that still be classified as a real estate transaction?