Good evening BP!!! I'm new to wholesaling and have a property under contract with the seller. I've spoken with two different attorneys on who should run title ... one said that I as the wholesaler should, where the other said the opposite.
I also signed the agreement with the seller in my personal name, now I'm considering putting it under my LLC. Has anyone had any issues doing it one way or the other? What are your reasons for doing it either way?
I am brand new so I'm not necessarily giving you advice but rather regurgitating what I've learned so far from others and resources.
It MIGHT have been in Jeff Leighton's The Beginner's Guide to Wholesaling Real Estate, but I could be wrong because I've been reading and listening to so much material I get it mixed up. But....I believe he mentioned that using your LLC for the contract is recommended versus your own personal name. The explanation is that it separates you from the liability, it's a separate entity.
Someone may correct me or agree with me, but I've only heard that you bring the contract to the title company with your earnest money in the contract.
You can wholesale it in your own name to start out, liability would be a potential issue. I'm not an attorney but I did my first 2 flips in my own name before I even had an LLC. I truly think that going out and doing deals at the beginning is the key, don't get all caught up in building out your systems and getting everything perfect. Go make some money and do some deals, then you can worry about protecting what you have. I didn't have much to protect when I got going anyway.
As for the title question, you can run title after you have the house under contract. If you wholesale the deal you will pass the closing fees on to the end buyer. Hope this helps!