Hello, I am currently in the Military and am trying to get into wholesaling with my business partner. I've been doing my research for awhile, but still have some questions. To start, would I need an S-Corp, LLC, etc? I've had people directing me towards the S-Corp Route, and about the same amount supporting the LLC route.
Also being in the military, all of our legal forms and paperwork are on specific documents used throughout the branch of service. Is this the same for wholesaling? Are there specific forms I would need to provide my motivated seller and buyer, or would I just draft my contracts up myself?
And finally, are there any limitations on how often or where I can close a wholesaling deal. I travel a lot, and am wondering are there any special rules I need to abide by if I wanted to tackle a deal out of state. Thanks for any help you can provide!
@Ricky Robinson Welcome to BP and thank you for your service! With regards to the company formation I would suggest looking into an LLC with an S Corp election (your LLC will be taxed as an S Corp)
With regards to forms, you will need an assignment of contract agreement and a purchase agreement. I would definitely contact a local real estate attorney and get some guidance on the contracts to use for your state. It can get a little tricky when trying to wholesale in different states because each state has its own laws pertaining to wholesaling. You definitely want to play by the rules where ever you are.
@Ricky Robinson - I think most of your questions would be best answered by a real estate attorney practicing in the state you would like to work in. If you start working in a different state, find a real estate attorney who works there. If you need local recommendations, the forums here are a good place to start, and local meetups are another.
I have used an LLC with success. I have started C Corporations for other reasons (non-real estate), but have never used an S-Corp, so I can't personally tell you the pros and cons.
ALWAYS have legitimate documents created by attorneys for the appropriate state. Well worth the (small) cost.
Good luck, and thank you for your service!