Updated almost 9 years ago on . Most recent reply
Wholesaling in Philadelphia
Looking to get more information on how to wholesale in Philadelphia. Such things like attorneys, title companies and etc
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I'll give you a very short synopsis: obviously, consult with your own attorney and do your research. Essentially, every time you sell or buy properties in Pennsylvania, you have to pay a transfer tax. The amount can range from 2% to 4% (and slightly above) depending on the location.
One thorny issue in as a wholesaler in PA is how to deal with transfer taxes. If you do double closings, you are fine but you have to pay the fee twice. Some wholesalers simply assign the agreement of sale and pay taxes once. The problem is that the law is very clear that such assignments are taxable so you deal with audit issues. The final way is to use what many people call the option method. That shouldn't generate transfer taxes. But it's slightly more cumbersome.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.