Bid Accepted and then form an LLC

I am looking at a few 30-60 unit commercial apartment buildings. I want to form a LLC for each individual commercial apartment. Would it complicate things if I were to bid on some apartments, get a bid accepted and then form a LLC and buy it using the LLC at closing. I am waiting to form a seperate LLC until I have a property actually under contract. Should I form a seperate LLC now, or can I wait until I get an apartment building under contract?

Would this complicate the process or is this how it is usually done?


if you sign a contract as yourself - which you’d have to do if you don’t have a business entity - then you’ve personally contracted to buy it, not an LLC thereafter.

form business entity now, then when you sign a sales contract, you’ll sign it as representative of company, who’s buying the property.

it’s the difference between…John Jones (Buyer) agrees to buy…


Jones LLC (Buyer) agrees to buy…

you could of course buy it as nominee - then assign the contract to business entity.

have you talked with a lawyer about this?

have you talked with CPA about what business entity is best?

Iron Range,

In Florida you can search the names of LLCs and then see if your name is taken…if it isn’t, then you can have the LLC paperwork all set up and ready to go in a specific name.

I have heard of people making an offer in the name of an LLC that hasn’t been formed yet. If the offer gets accepted, then you send off the incoporation paperwork.

I don’t know if this is legal or not, and you had been make sure your LLC name is obscure enough that it won’t get picked up while you are waiting on your offer to come back.

Anyone heard of or done this?


TMCG is correct. Buy it and/or assigns and transfer it into your newly chosen LLC at closing.You may want more asset protection than just the LLC. Start w/a trust w/ the LLc as beneficiary and a FLP as member of LLC…A bogus tenant suit will have a hard time finding you…Hope this helps :smile

I’m using a HML to initially buy and rehab the property. Then in 3 months I will be refinancing. How about buying it in my name than forming a protective entity like a trust or LLC and refinancing using that trust or LLC? Any problems with getting the property refinanced in the LLC or Trust?

I need to put a bid in by Monday, so that’s why I’m asking these questions that may seems odd.


You can also place an addendum to the contract listing how you wish to take title.

Once the contract is accepted, you will have ample time to file the formation paperwork with the state’s entity to form the LLC.

As always, run the contract by the attorney on your team prior to assuming it will work in your state.

Hi all…

Question to add to the current…

Say you are making offers on REO properties (that can’t be assigned), do you create the LLC BEFORE you make the offer. (i.e: Jewels, LLC) , get bid accepted, and then SELL that LLC to a buyer (i.e: wholesaler) ?

Furthermore, I was told to make sure the name on the closing docs do NOT have anyother name except the LLC you are using. That way the “Mr BigShot Bank Attorney” won’t get leery and back off. Defaulting on the deal, and leaving you with your pants down! :anon
I mean, technically you’re NOT assigning the contract, just selling the LLC right?!

Am I right on this? SOMEONE please help me on this…I want to start making offers to Banks thru my re agent, but I need this little bit of info nipped to move forward without complications. Who do I call? Lawyers? CPA’s? HELP PLEASE!! Any clarification is welcome!! :help

Thanks in advance!


contract not assignable? contract in the name of the LLC and sell the LLC. you can do that.

what you do with the LLC is, technically, none of the bank’s business.

However, if you have personally guaranteed the LLC’s loan, that is another issue.

If you form an S Corp and transfer property from your name to S Corp, what steps follow?

Will mortgage company be notified, if you have a mortgage? Will they allow this/ or can they keep it from happening?

I am in a situation in which I went to purchase under S Corp, was told they could not accept, (under 2 years old). Was also told that Mortgage comp. would not agree, because it was a new company. So, I put it under my name and now want to transfer it.

What are the ramifications if any? And what steps should be followed?
Thanks to all for your help.