Do I Need To Open An LLC Or S Corp To Wholesale Real Estate

[Cameron Outlaw]

I was told by someone that I need to set up an LLC or S Corp to wholesale real estate. Im not too sure if that is necessary though as I will never actually have ownership of the house. Any info on the topic would be much appreciated!

[David Faulkner]

Originally posted by @Natalie Kolodij:

@Jonathan Damon 

I'll assume that with your 26 posts of history you've mastered real estate law for literally every state. 

Do you have your law degree handy? 

@John Thedford Maybe you can chime in on the legality in all states? I believe you've cited sections before

This is funny stuff ... kind of a kin to a drug dealer asking if they should open up a LLC or S corp to protect their business. If you want protection from the law, then you need to be 100% sure that you are also compliant with the law as Natalie suggests. If you break the law, then an LLC or S corp or any other insurance or structuring will NOT protect you ... you can't have your cake and eat it too ... you can't break the law and then go pleading with a judge for protection when you get sued for it ... well, you can try, and I'd love to be in audience in that courtroom when the judge rips you a new one. There is no legal way to wholesale IMO ... double closing is flipping, not wholesaling ... selling with a license is brokering, not wholesaling. Wholesaling without a license is illegal.