just wondering what you guys prefer? do you use an llc for your wholesale deals without selling the llc at the end? or do you close all deals in your own name?
Great question ... obviously we set up a business entity like an LLC or LP, etc. to protect ourselves and provide tax deductions.
In reference to your 1st question: “do you use an llc for your wholesale deals without selling the llc at the end?”
Yes and No ... if I’m simply doing an assignment of contract then I will write an offer under my company name and once the offer has been accepted,
I will then assign it to my qualified cash investor. When you’re doing
an assignment you’re simply assigning the REPC (real estate purchase contract) to your cash investor so you there is no need to sell the LLC.
I personally want the property under contract with my company name
for protection in case there is some crazy situation that would cause a problem and for tax purposes ... that being said, I’ve never
had to worry about any “crazy situation” thus far. In some situations the seller will want the property written in an individual’s name and not a company ... this won’t bother me because I’m writing a contract that will allow me to exit if there are any issues.
If I’m doing a double closing than I’ll buy and sell the property with my company’s name, because I still want the protection if I’m dealing with a bank and many transactional funding companies will require that you have the contract in your company name.
At the end of the day, it’s about getting the deal to work and making money. Since I’m not a CPA nor attorney, I follow their advice to protect my assets and provide tax deductions.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I just wanted to piggy back on what Drew said.
The purpose of having your LLC established is to keep your personal and business separate and protected. So the use of your LLC on your deals is the best route to take. I rarely sell my LLC. There are only a few instances in which that is necessary.
Again, it’s going to depend on the deal and the advice of your CPA or attorney to sell or not to sell.
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Hey Sam,
Great question ... obviously we set up a business entity like an LLC or LP, etc. to protect ourselves and provide tax deductions.
In reference to your 1st question: “do you use an llc for your wholesale deals without selling the llc at the end?”
Yes and No ... if I’m simply doing an assignment of contract then I will write an offer under my company name and once the offer has been accepted,
I will then assign it to my qualified cash investor. When you’re doing
an assignment you’re simply assigning the REPC (real estate purchase contract) to your cash investor so you there is no need to sell the LLC.
I personally want the property under contract with my company name
for protection in case there is some crazy situation that would cause a problem and for tax purposes ... that being said, I’ve never
had to worry about any “crazy situation” thus far. In some situations the seller will want the property written in an individual’s name and not a company ... this won’t bother me because I’m writing a contract that will allow me to exit if there are any issues.
If I’m doing a double closing than I’ll buy and sell the property with my company’s name, because I still want the protection if I’m dealing with a bank and many transactional funding companies will require that you have the contract in your company name.
At the end of the day, it’s about getting the deal to work and making money. Since I’m not a CPA nor attorney, I follow their advice to protect my assets and provide tax deductions.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I just wanted to piggy back on what Drew said.
The purpose of having your LLC established is to keep your personal and business separate and protected. So the use of your LLC on your deals is the best route to take. I rarely sell my LLC. There are only a few instances in which that is necessary.
Again, it’s going to depend on the deal and the advice of your CPA or attorney to sell or not to sell.