Wholesaling; Done without Double-closing?

I think someone had mentioned that if you sell more than 6 homes in a year you were declared to be a ‘dealer’ (by IRS? State?)

Is there a way to find a distressed property and turn it over to an investment buyer without doing a double-closing… so as to avoid the appearance of having bought so many homes in one year?

How about some sort of Consultant contract with the Investment Buyer ahead of time that gives some sort of protection that they won’t just approach the Seller themselves and cut you out of the picture? I’m guessing laws regarding free-trade or something might prohibit that.

So would all this mean you MUST enter into a “Contract to Buy” with the Seller every single time and go through a double-close escrow always?

you do not always have to double close. you could assign your purchase contract (as long as it is assignable) for a fee. this income still has to be reported to the irs at the end of the year and it will get taxed. but it is a good question to ask are you still uder the dealer status if you never actually closed?..hummm!

You mentioned “as long as it is assignable”… making it assignable is a matter of how I write the purchase contract with the Seller, right?

yes you are correct