Forming an LLC for an REO deal?

Hello everyone,

My re agent brought me an REO lead. The bank is asking 99K cash and it needs about 50K in repairs. The comps in the area are coming back at 350K. If I get it, I’m looking to wholesale it. Now, since we all know that REO’s are not assignable, I was told to form an LLC named after the address of the property that I am pursuing, ex. 311 Anywhere St, LLC., after my offer gets accepted. Now, I was also advised to bring in a hard money lender before making my offer to look at the deal and see up to how much they are willing to lend. Obviously, what I’m looking to do is to sell my interest of the LLC to my end buyer which would take care of the assignment issue. Anyone in here ever done this? If so, how much is the usual cost to form an LLC for this purpose? I’m in Texas by the way. Any feedback would be great.


My CPA does all that for us. However, he’s on retainer and I don’t know how much he would charge to do a one off. He’s in California, but if you want his number, email me.