Wholesaling HUDs using llc

[Tevin Swain]

Is there anyone who knows about or is familiar with using an llc corporation to wholesale HUD properties? Could anyone possibly tell me about the process and how it helps a wholesaler ?

[Joe Villeneuve]

Originally posted by @Tevin Swain:

Thank you for your input Sean. Joe could you explain the process to me?I am looking forward to making my first offer and this seems like a very safe a reasonable way to get started. My goal is to get started with this process as soon as possible.

 Sorry Tevin.  I didn't know you asked for more info.  You need to put the "@" in front of the name so that person knows you are looking for their reply.

Here's how it works:

1 - Establish an LLC (most states will do this online. Cost varies. Mich is only $50)

2 - Get an EIN number from the Feds site...this is free.

3 - Make your offer in the name of the LLC (they'll want to see the EIN #)

4 - If the offer is accepted, sell the LLC to the person you want to "wholesale" the deal to (this is instead of assigning the deal...since you can't assign a HUD deal), BEFORE closing. The cost of the LLC is equal to your wholesale fee.

5 - Change the Managing Partner's name from yours to the new owner's

6 - New LLC owner now closes...in the name of the LLC

The buyer and seller never change...only the owner of the LLC