Advice on Wholesale steps

Please Advice.

I already have more than a couple of properties that i inspected and had estimates on. All properties are fixupper and/or REO with a realtor.

Can somebody advice me on how to get to the next level on submitting offers ( use my s-corp, and/or assign, escape clauses etc). And other check list to do to cover all my bases for the next step ( call buyers list, title search, contractor estimate, ads etc ). My exit strategy for all of these are to wholesale.

Thanks, T :banghead2

PS. I have pix upon request.

Just a note on REO properties. Lenders make you use their contracts which are not assignable.

You can write contracts in your name or your corp. However, if you are getting funding, lenders will usually not fund to a corp, so the contract will have to be in your name.

The steps you listed are correct. Find a mentor or buy a wholesale program to get the details on how to do this.

  1. Get a good buyers list
  2. Get a good buyers list
  3. Look at properties
  4. Tie up property banks usually allow a 7 day inspection clause in the contract
  5. Get your buyers through in that 7 day period.
  6. If your buyers like the property get a non refundable deposit
  7. If they dont like it, use your inspecton out.

If banks wont allow you to close on the home in a corp, then close on it personal, and deed on the s corp.

You can assign the contract by purhasing in the name of a llc, then selling your position in that llc to someone else.

I hope this helps
Eric Medemar

You can still do a double close if you can’t assign, no?

Yes you can double close.

indeed double closings will also work well, just be sure that the person that you are double closing to, has financing that will allow for a double close.

eric medemar

Hey all…
I’m a newbie to the game, and @ the finish line of “analysis paralysis”! :biggrin Thanks Eric for your great advice AND website inspiration!
Just a couple questions regarding Steps:

Eric, you mentioned above that REO banks wont allow you to “assign” their contracts… :banghead , and that you can sell your LLC to another entity (wholesaler) and get around that all together. I’m totally confused now…can you , OR ANYONE HERE, explain what that means? I have been trying to find the answer to that question all morning…Thanks in advance!


Hi BigJewels,

I’ll do my best at providing an answer; anyone else that has a simpler or more correct way, please feel free to add.

What your are referring to when you “sell your LLC” is that when you put the property under contract (the REO contract) you purchase under the LLC name.

What your are assigning is the ownership or interest in the LLC, not the original contract. This also applies to Revocable Land Trusts and other entities created for contract as well. In fact, my speciality is using Revocable Land Trusts for real estate purchases on longer term hold usually for the purpose of rent/lease-to-own. Ah I digress…back to the question at hand…

Let’s draw it out this way:

YOU fill out purchase contract to buy REO property. Under name you write YOUR LLC NAME, LLC.

This is most likely a one-time use of this unique LLC, because now you will be “assigning” your “interest” or “ownership” of the LLC NOT THE ORIGINAL CONTRACT.

Okay, so you assign your interest in the LLC to a buyer (investor, wholesaler, whatever) through an assignment contract (Another document that spells out the buyer is buying the interest in the LLC).

This paper now states the buyer owns the interest in the LLC.

Remember what the LLC owns under contract? Yep, the original REO property in question.

So you are selling your ownership in the LLC NOT the original contract.

REO CONTRACT purchased in name of LLC → LLC interest sold to buyer → now buyer owns LLC, which in turn under contract purchased the REO property.

Hope that makes sense.

If anyone has a simpler explanation or if I’m incorrect to what I’ve seen done in the past, I humbly invite corrections or addtions.

Best wishes! :biggrin

Ed Bisquera

P.S. I hope this new post doesn’t violate any posting rules. Being new to this forum, I was ignorant at first of the posting rules. If there is any issue with this current posting, please advise. I think I posted correctly. Thank you. EB

Thanks E.B that was money!! … :beer

Exactly!!..what I needed and explained…IN PLAIN ENGLISH. In fact, after researching further, the doc you use to “sell” the LLC with is called the “Substitution of member interest form”. Just a couple sigs, some address changes, and WHAM…cash ! That is really worth it. Thanks alot for your help!!
Let me ask further…

When I create a that “unique, one-time” LLC, do I have to create ANOTHER “unique” LLC with my next deal if I want to continue to assign contracts using the LLC method? Hmm…

Thanks in advance

Glad to have helped.

But I believe there are even better answers than mine (again, as a mortgage consultant this is only what I’ve witnessed) so perhaps creating an LLC for every purchase is not the best course of action after realizing what I had said. LOL

Your best is to see if you can talk to an attorney and present your problem. Also search through the forum here at, because there are qualified CPA’s and equivalents who have probably already answered your question regarding LLC and assignments of interest in the LLC.

Again, I humbly ask that anyone else with experience please post a response if I’m inaccurate in any way.

I did find an article regarding LLC’s very helpful on this site written by Bill Gatten.

I provide the link here (hopefully that’s okay by REIClub forum rules)

Another one by William Bronchick (RE Attorney; he has LOADS of informative articles)

Hope that helps,


First of all, I would like to thank everybody you replied to my post. :cool

But i found something similar to the LLC solution stated earlier in this post. How about buying under a Trust and be the Trustee ( it would looks like I’m buying under my name ) and explain to the Banks, its for Estate Planning purposes. But one of the benficiary is the Wholesale Buyer that funds the deal. After the close i sell the whole beneficiary interest to Wholesale Buyer. No double close!!!

What do you think???

My question would be is, are you getting the original seller to agree to keep the existing mortgage in place?

The original owner/seller would have to agree to that and also understand they are the Grantor that starts the trust and names himself as a beneficiary, along with you (investor beneficiary) and the tenant buyer (buyer beneficiary). Of course you being the investor expert, you can help in creating the trust or pay a competent attorney to do so. Or use the services of Bill Gatten’s

Than it sounds like you would name yourself (investor) as trustee, that controls the trust’s direction. (Beneficiaries directs trustee–> Trustee takes care of the property).

Since you are listed as a beneficiary, you’d be a beneficiary/trustee.

It sounds like that would be a go, in what you described. I just wouldn’t put your PERSONAL name under the trustee line, an LLC would be better, which could be one you own or better yet, an outside LLC Firm specializing in servicing Land Trusts. :slight_smile:

You wouldn’t have to explain necessarily to the bank about anything. They simply would get a notice from the closing stating that the title is now vested in a Revocable Land Trust, created by the original owners named on the loan and the named Trustee will be expecting the bill from now on and paying all the monthly obligations on the loan and home. The bank would hardly bat an eye at this. Happens all the time for estate planning.

Now this Land Trust method probably works better for at least a 2-3 year holding period, of “leasing-to-own” this property to the tenant buyer. I don’t know how it applies to a double-closing. Anyone have an example??

In fact you should check into the minimum time a Land Trust should be set up for. Again can help you with this or a competent real estate attorney.

Best wishes!

Ed Bisquera

P.S. I just wanted to say, that if you expect to do any of the contracts and set up for an LLC and/or a Trust for nothing out of pocket, forget it. It takes money to do this business, so be prepared to do the right thing, using a company that does it professionally. Setting up an LLC correctly is roughly $199-299 (prices I’ve seen online anyway) and setting up a Trust correctly can be as much as 1% of the sales price of the loan and could be less. There’s also the monthly Trustee’s Fee to manage the Land Trust.

But doing it right, paying the fees, the first time around, will save you TONS of HEADACHES, you’ll learn EXACTLY the process and once of you’ve done a lot through the service, perhaps you may wish to do it on your own. It also looks “official” when the Trustee named in the trust, is a different company, with no relation to you, and this OTHER COMPANY, LLC acts as trustee, still under beneficiaries’ (yours’) direction and control. No worries mate! :biggrin

Wow…talk about information! :shocked I’m more excited now about this business than I was originally!

So…Land Trust v.s LLC Hmm…after reading/researching further:

If it’s cheaper and “looks better” on the contract to use a REAL LLC, rather than a “unique, one-time” LLC, then there’s the answer. Create an LLC, and make offers under it, that you actually will use in ALL your transactions (happens all the time), get the deal under contract, and then just “sell the assets” of that LLC to your buyer (wholesaler) using the docs specified by your competent, re attorney. That way…it’s legit and can’t be scrutinized by the bank OR more importantly, your wholesaler!

Did I get that correct or did I miss something? Please comment, if I’m wrong, fine…correct me. :beer