OfflineI would like to try selling a LLC instead of using flash cash to flip REO properties. Does anyone have an example contract on selling a LLC to an end buyer.
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Joel Thomason
Thomasoninvestments.com
Maybe I need to elaborate so I can get a answer from someone. Instead of using transactional funding and doing double closings. Im going to pay 50 dollars to my state and get a shell LLC and go under contract with a bank to buy a REO property. I have my buyer waitning in the wings to buy this REO. I will then sell him my LLC with the right and assets of the LLC for a fee which would be the spread i would make on the property. Its almost like assigning, but its selling a LLC to another person. The Banks still see that LLC as the buyer therefore they are not objecting and Im keeping the transactional fee in my pocket. Does anyone have a contract for this purpose or i may have to call a RE attorney to draw it up.
Joel Thomason
Thomasoninvestments.com
If I am correct, you can ask your buyer to put you on his LLC, Then you would put that LLC down as the buyer, one he buys the home you can either resign from the company or he can keep you on for further deals.
Just something to look into. TALD.
Richie.
You may have misunderstood. If im dealing with a regular Joe who wants to buy this property and does not have his own LLc. i will have to form one myself go into contract with a bank for the property under my shell LLC. Then sell that shell LLC to my end buyer for the spread i would make on the property. I wonder is there a contract for this from anyone or does anyone do this type of creative investing.
Joel Thomason
Thomasoninvestments.com
I believe you can go to your state's website and do it from there or have your attorney do it (example 123 Smith Street, LLC.) Doing it yourself on-line is a much better price. I haven't done this but have heard it is easy to do.
Lea
SPR Propety Solutions, LLC
I think it is easier if you can find a title company/attorney who handles a "dry" simulataneous closing. That is where they use your end buyers money to fund the deal first. Then they close with your seller. My partner just did that hear in PA and that's how I got my first deal. Not sure where you are but you may want to investigate if they are possible in your area. From what I understand, they are not as popular as they used to be . Good luck!
MARTIN
FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!
Go to the secretary of state website were you open your LLC And change all your information to his... and just give him your articles of good standing and all the llc paper work....You dont need a contract you just need to make sure that theres no lien taxes due or judgements against the LLC
I haven't gotten to do this yet but I want to try it. Here's what I understand of it.
The basics that you’d need are your LLC documents (Articles of Organization, Operating Agreement, etc.), the purchase contract with your LLC as the buyer, and an Agreement to sell your entire membership interest in the LLC to your wholesale buyer. Your LLC would first put the property under contract, then find your wholesale buyer and sign the membership interest sales Agreement. Then your wholesale buyer goes to closing. You’re wholesale buyer may need to bring the LLC’s paperwork to closing, but that’s not always the case.
Here's a link you might find more information on this.
http://www.343homes.com/getting-around-non-assignable-contracts/comment-...
Good luck, keep us posted how it went.
Barbara
Owen Properties, LLC