Greetings board,
I’m working up some offers on listed junkers. Buying listed properties means a double closing (Realtor’s contracts are non-assignable). Does this mean double transfer taxes? MD has a prohibitively high transfer tax rate. If I get a listed property under contract to wholesale, how do I get rid of it without there being two sets of transfer taxes? Unless I’m missing something. There’s got to be a way around this.
Thanks for the feedback!
Buy in an LLC or land trust, and then sell it at closing.
Or, add your buyer onto your contract, and then give them a quit claim deed after closing in exchange for your fee.
Or, sell your property at a net (to you) price, with your buyer paying all closing costs.
Or, just factor the costs into your offer, and offer a little lower.
Good luck,
Steph
Thanks Steph, great suggestions :beer
To add to what steph said be sure to have you llc ready before you write your offer so you don’t end up needing an extension to your closing dates which can cost upwards of $100/day.
Also you don’t sell the llc at closing you sell it days prior to closing, especially if your buyer is obtaining financing in the name of the llc. Even if they are a cash buyer you will need to close the sale of your llc prior to going to closing on the property itself.
If your dealing with non-bank owned ie. private owners. You can use a 30 day lease option to wholesale the property as well.
Not sure Im following this. I can’t use a transferrable contract between me and the homeowner in a short sale or it will blow the deal when the lender sees that. Also I can’t show the lender that I am making money on their loss at closing. Are you saying I must enter into a land trust on the property with me as the trustee? And also will this solve any seasoning issues if the investor I sell to isn’t using cash ?