SELLING AN LLC

Bird Dogs, Wholesaling
1

I understand that one of the creative ways to wholesale is to create an LLC for the property and then sell the LLC to the end buyer. Is there a special contract that is used for that? And someone briefly explain the process…please :smile

2

This will be different in different states and you should ask your lawyer about it. That being said in Texas this turns the deal from a sale of real property to a sale of personal property. Because of that any contract you want to use can work, but the buyer may have reservations if the contract is not drawn up to look primarily like a real estate contract.

I sell my houses to my owner finance tenants by putting the deed into a trust and selling the trust. That makes it a personal property deal and not a real estate deal. I would get my state’s basic real estate contract and alter it to achieve the advantage you are trying to get but maintaining the look and feel of the original (real estate) contract.

3

By state’s real estate contract you mean for example Cincinnati Area Board of Realtors’ contract? Please advise. Thanks!

4

In your example, it would be the Ohio Association of Realtors (http://www.ohiorealtors.org/) but, if you’re in Cincinnati, the form on their website would be fine - it would encompass state laws/rules/regulations as well as city and local.

Keith

5

I have found that www.bizfilings.com has the best deals with setting up your company. They file everything for you and become your agent for a year. Customer service is amazing. :biggrin

6

Thanks! I will look into this!

7

Your welcome. But back to selling an llc.

It really sounds like to much risk when it comes to wholesaling. I will tell you why. Most LLC’s cost money to set up. $300-$500 depending on who you go through. I hope you are not planning on using this as a standard method of getting off your properties. All you should be risking is 10 bucks bro.

8

Hi,

 What ever happened to the LLC manager making a proposal in the monthly minutes to sell or liquidate the LLC?

Then what happened to the recording and signing by members to approve the sale or liquidation of the LLC?

What ever happened to the approval of members and a resolution to appoint a sale or liquidation manager?

Are all the legalities in place supporting state and federal law to lawfully sell an operating and in compliance LLC?

Are accounting records in place under generally excepted accounting principles to transfer to a new owner under the resolution in minutes to sell or liquidate the LLC?

           GR
9

You are correct! I don’t know much, but I don’t plan on doing LLCs for each property. However, I am going to properly set up an LLC for my main business and follow procedures regarding all those things that Gold River mentioned below.

10

That will be a wise thing to do. Protection is always a benefit when doing business. Plus tax benifits.