Wholesale/Contracts and Structuring

[DeAngelo Melone]

I went to a seminar earlier this month about wholesaling and the speaker mentioned that when wholesaling he would buy a property with an LLC and then sell the ownership in that company to an end buyer. [b]FYI I'm in the Brooklyn/Queens area. I'm looking to duplicate this same process for my own wholesale deals and wanted to know in more detail if any of the BP community was familiar with this process and exactly how one would structure their wholesale contracts with sellers and buyers. The seller: When speaking to the seller; do you tell them that you are buying the property straight out or do you tell them you have partners that will buy the property? How do I get the right contract set up for my A to B position (A=seller and B=me), and who draws up this contract (shoestring budget can't afford any lawyer at this time)? What time table is best for this contract 30/60 day? I figure that you have a contract between you and your end buyer as well. That being said what type of language is in this contract, who would you use to write this contract up? I do recall it being said that I (wholesaler) would let the end buyers lawyer figure out how to make it work so that the end buyer can purchase the company from me so that part is pretty self explanatory but the rest I need to be more informed. Appreciate anything anyone who is familiar with this process can tell me.

Thanks A Million,
DeAngelo

[Wayne Brooks]

The main reason you would sell the ownership in the LLC, is to avoid any assignment restrictions you might have with a short sale or a REO. Otherwise, just assign the contract, or double close.