All Forum Posts by: Paul Shinn

Thanks for all the answers everyone has sent in.

Now I didn't go into sufficient detail of our situation.

We are looking to wholesale properties in Cleveland, OH. The large issue in most areas of Cleveland is that they have what is called "point of sale" POS. This POS is mandated by the city. The property receives a "report card" for its current state. This includes fix up requirements e.g. roof needs fixing, electrical needs upgrading, driveway needs repair etc.

The newest owner of the property must place this money into escrow, before the property can close. Hence the llc process or the strategy of purchasing in an llc and selling our interest.

As an investor's we don't want pay this money upfront for a property we intend to wholesale.

To the best of our knowledge we cannot close in a land trust because title companies will not close in land trust in Cleveland.

Our understanding is that we cannot do a double closing as this will mean that we have the contract with the bank, so this will mean that we will still have to pay the POS money. The POS money won't get released until it is signed off by the city, which potentially could take weeks.

Thus we are choosing the strategy of selling our newly formed llc to our buyer for a fee, and we just wanted to understand the process of completing this correctly.

We intend to purchase each property in an individual llc. We have a bank statement to prove to the bank our POF which we intend to include with each offer.

Any new insight would be helpful

regards Paul Shinn

A question – We are looking at wholesaling REO's. We intend purchasing a REO's in a llc and then selling our rights/interest in the llc and collecting our fee.

What we need to know are the steps involved in doing this correctly.
For example:
Step 1: A signed sales and purchase agreement on the property
Step 2: Find buyer
Step3:
Step 4: and so on
• Non refundable earnest money - where do we deposit this?
• Which parts are done in escrow?
• What forms do we need to make this legal?
• Do we need our lawyer’s involvement?
• When do we get paid?
• Who needs to show up for closing?
• What are the potential lawsuits and what do we do to prevent this from happening if something goes wrong in the future with the property?
• What disclaimers if any do we need to get signed?

all help would be much appreciated

thanks Paul