Hello,
I have heard that banks will not allow contract assignments on their REO’s. But I also heard that if you put it ander contract as an LLC, (123 main ST LLC) you could then sell the LLC to you prospective buyer. Is this true? Will banks accept an offer from an LLC, and how much does it cost to create the LLC to sell?
Thax
John
John,
By definition all contracts are assignable. What banks hate is to see “And or Assigns” on the contract.
What you could do, which is just as easy, is set up a double close. That way you just do 2 closings, and it works similar to an assignment.
As to your question of how much a LLC costs, that varies by state as corporations are set up at the state level.
Hope that helps…
the only problem that may arrise with the double close is that you not only have to pay two closing cost you may run in to title seasoning issues where with just selling your llc to a new buyer or assigning it over to your buyering if not closed yet you would run into less problems with the banks…i believe there is an article on steve cooks website talking about doing this