Assigning REO By Transferring LLC

[Lisa Monroe]

Hi Everyone,

Can someone tell me the process of assigning a REO property by putting the offer in the name of an LLC and then assigning the LLC to the end buyer?

1) When do i create the LLC?Before I make the offer or after? Do I have to wait weeks before it is registered before assigning it?

2) What name of the LLC should I put the home under?

3) What forms do I need to transfer/assign the LLC to the end buyer?

4) What are the pros and cons of assigning through the LLC method?

[Andy J.]

Curt,

What Lisa is talking about actually has no "assignment" in it. What she is trying to say is getting an REO under contract through an LLC and then selling that LLC to the end buyer.

Lisa,

1) You'll have to check your state LLC laws and registration system to see when you actually have formed a valid LLC. You definitely want to form the LLC before bidding, otherwise you could be using a name that's already taken.........that could be a big problem obviously.

2) You can use whatever name you'd like for the LLC (as long as it's not already taken of course). Probably best to make it something reasonable and NOT "Mr. Tiddlywinks Fun Time House Buyers, LLC".

3) The forms you'll use to accomplish this is essentially a transfer of ownership or outright sale of the LLC, seek competent legal advice here for specifics.

4) You don't have to do a double closing therefore less cost, time, and hassle. However, making a buyer understand that they will be purchasing an LLC which owns the house rather than just the house itself will take some extra eplanation and finesse.