Is it possible to sign P&S agreements as a company? Scenario inc

Is it possible to sign P&S agreements as a company? Scenario inc

Real Estate Agent · Los Angeles · Member since 2017 · 107 posts · 33 votes

Say you have a wholesaling business. Except, you've worked yourself out of the work load and you now have numerous sales-y employees calling around and helping you find deals. You get many contracts, which can go out to other investors or you have the option of purchasing properties yourself when a good one comes around. 

Most purchase and sale agreements I've seen ask for a specific buyer name. In this case, I don't want the "buyer" to be any of my agents reaching out to the sellers-- I want the company they're working for (mine) being listed as a buyer. The employee never has any direct control over the property but I'm paying them hourly with my own set commission rate. The company can then assign out the contract to the chosen investor with totally separate financing requirements (such as me using a traditional home mortgage for example). The company then accounts for the income from the contract signing as profit toward the IRS and they pay all the required taxes.

Is this scenario possible in the US?  All of the resources I'm finding online seem to be focused on one person doing all of the work themselves and they don't really address teams of people working toward this purpose.

I'm definitely going to reach out to a lawyer but I'm in planning stages right now and would love some ballpark answers and discussion. Thank you!

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  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    4y

    The employees can get the seller signature and they can bring the contract to you to sign as the buyer. Or you can have an operating agreement that states which employees can sign purchase agreements only. You would still sign the closing docs. 

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    4y
    Yes, you can have your entity as the buyer on the PSA, but you will likely be required by title to show your entity docs including a corporate resolution which stipulates who has the power and authority to sign on behalf of the entity.
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