Edge 2014 question

What Michael means is that an LLC assignee is simply selling the LLC to our end buyer, that it is in essence an assignment but not technically because it is the sale of an LLC that just happens to have that property in it you are wholesaling. I was at the Edge btw & man you should have come! Or did you go? I didn't see you there.

When he gets a property that he knows he is going to use this technique on, he sets up one that is used just to buy that property. If I remember correctly I think he said once that he often uses the same name and adds a number on the back. He has LLCs set up in advance and just uses these. Example: Blue Skies LLC #1, Blue Skies LLC #2, Blue Skies LLC #3, etc.

Then, as Tony said, he sells the LLC to the end buyer, who will then be taking his position in the deal. (the cost of setting up the LLC will be figured into what he sells his position in the contract for) The actual "name" of the buyer stays the same, so it is a loophole to get around the banks terms.

Michael, if I did not explain that correctly, pls correct me.

Karen

Yes I understood how to get around, but thought he said he had the same LLC, so that is what threw me, when I knew you had to sell the LLC... Karen your explanation made sense, as he just uses the same name but alters with a number or some such thing. A street address would work too I suppose. Thank you both!

As Karen stated above, I do sell the sole purpose LLC when I am doing REOs or short sales. But what I talked about at the EDGE was offering on any other type of MLS listed properties in the name of one of my LLCs (never my main business LLC) I don,t mention anything about assignability or putting and/or assigns or wholesaling to the agent or on my original offer. In our extremely competitive market doing that has been a deal killer. So I make a cash offer in the name of one of my sole purpose LLCs. When I get a buyer I put him under contract with the option (my choice) to sell him the LLC or assign the contract. Then AFTER the inspection period is over and the earnest is hard, I have my agent submit an amend to change the contract to assignable. Hasn't failed yet, I assign the contract and keep the LLC. If for some reason the seller won't allow an assignable contract then I CAN sell the buyer my sole purpose LLC. Assigning the contract is by far the easiest way to close. Like I said, this does not work on REOs and short sales, but works great on any other kind of MLS listed properties when dealing with agents. Of course if you are direct (no agent involved) with a motivated seller you can use an assignable contract with little or no earnest money down.

Hope that explains it!

Michael

I understand now. So no short sales or REO"s work. I am not sure I am having this problem otherwise, but this is very good information to know if needed. Thank you so much. So you just put in your LLC name and later when funds are hard you amend the contract to assignable if I understand it right. Thanks you! Tammy

Correct. We have been getting all of our MLS contracts amended to assignable ones using that strategy. Not REOs or short sales, there we sell the LLC or Trust.

Michael

I never have heard of ANYONE ELSE in Denver doing this. This is such a golden nugget that I can't believe Mike even shared this!
I strictly have been going after bird dogging/assigning houses ONLY with fsbos because with my budget it's just a little easier for me at the moment, BUT in the next month or two I'll be going after this strategy way more. Thanks for sharing this exit strategy Mike it's been a really big help for everyone fighting for REOs and anything on the MLS because as we all know almost every Realtor has no clue what it is we do as wholesalers lol