Looking to pick a brain.

Bird Dogs, Wholesaling
1

I have some questions about wholesaling in the Ft Worth area that I’m hoping I can get answered. I’ve been working diligently for the past three years to get things going. Personal setbacks have been at the core of why it has taken so long to get started. I have finally gotten my laptop, digital camera and all other miscellaneous hardware and software (websites included) to get going.

I’ve lurked here for the last few years reading and gathering information. There has been some very good information and ideas that have helped me put together a working checklist of items to be mindful of when doing this business.

Let me first preface this with the fact that I am getting a LLC going in order to do wholesaling. I know it is not required to wholesale real estate, but it is a requirement for me.

So here goes.

  1. When putting a property under contract, I am supposed to enter the the name of the LLC rather than my name. What steps need to be taken to ensure that I’m not selling my interest in the LLC, just my interest in the contract?

  2. I’ve read that it’s a common practice to use land trusts to circumvent the due-on-sale clause when flipping a property. I’ve also read that trusts do not actually do that, only LLC’s can. What is the chance that a lender will call the loan due, what are the repercussions and where would I fall in that mix if that was the case?

  3. Would it be less of a headache to use the pocket LLC method to just bypass the afore mentioned headaches?

2
  1. the wording of the assignment contract should have nothing to do with you selling any part of your LLC.
  2. due on sale clause and wholesaling don’t usually have anything to do with each other. technically a flip of a property could impact FHA or retail mortgage stips but usually only if it is double closed. assignments , when structured correctly are not applicable to this question
  3. i have no idea what a pocket LLC method is.

overall, it sounds like you are stopping yourself from going out and giving it a go. do your own due diligence and work at your own speed, but you don’t want to be asking more questions on a forum 3 years from now about getting ready to start, do you?

3

Thanks for the input. The reason for the gap in time is not by fear or personal choice. It’s been a legal stipulation beyond my control.