No more DOUBLE closings?!?!

You can still double close using transactional funds. You just need a good TF and POF provider! Free letters are usually worth what you paid for. We just really avoid LISTED short sales, to much time and headaches involved. I make REO offers everyday using my POF companies letter. Never had an offer rejected due to a generic POF letter.
I really like the LLC transfer. $50 and a single closing!

Michael

Oh I bet short sales can be a headache, my first assignment would have been a short sale if the seller didn't back out last second after 2 months of negotiating! Oh well, on to the next. It's nice to get emails from you saying you sold another property. Encouragement to let me know it's still possible in Denver! lol

The LLC transfer is something I don't know all the details on but I'm getting there. Single closings don't hurt!

A way to get around using an assignment or a double closing is selling your LLC to your investor. It is a simple process. You purchase the property with your LLC and have your buyer become a member of your LLC as a 100% money investor. You can get a proof of funds from your buyer at this point and submit it to the seller seeing that he/she is now a member of the LLC. After you close on the purchase of the property, you simply sell your interest in the LLC to your buyer for a fee typical of an asignment fee and the cost of the LLC and then proceed to set up another LLC for yourself. After you have established a trusting relationship with your investor you can stay invested in the LLC as a managing member with a zero cash investment and continue doing one deal after the other with your investors money. I have done this many times in the past and charge 30% interest in the LLC for my expertise in finding property, purchasing it, rehabing it and renting it out for cash flow investments. You can have more than one investor in the same LLC and buy multiple properties. The key is finding deals that make your investors the kind of return on investment they are looking for.

When you create the LLC do all the necessary documents to make the LLC transfer happen come with or do you have to go through an attorney to get this done?

Good news is I've had a cash buyer mention almost exactly what you have to me
when he explained how he likes to close on properties with wholesalers.

Getting close to that first deal!

Thanks for posting this information

The paperwork necessary to create a new LLC is available from the state government Division of Corporations for the state in which you will be establishing the entity. In most states, the information required is relatively basic, will need to be submitted, along with the registration fee for an LLC for that state. You will then need to apply for an Employer Identification Number (EIN), which can be done online at www.irs.gov. It will require you to have some information from your filed and registered LLC, so make sure you do that part first.
Documents to add a member to the LLC would be obtainable from the state website mentioned above.
You should identify the buyer in your purchase contract as the LLC that will be purchasing the contract. As long as you have identified the LLC as purchaser, the title/escrow company or attorney's office that conducts the closing will have the information they need in order to prepare the proper documents for closing.

Dallin thanks for laying that out I'm sure that will help alot of people here. Also thank you Michael for your input as well!

The Operating Agreement for your LLC is where the legal wording that allows membership/manager changes takes place. This is the document you need a qualified RE attorney to create for you. It also protects you!
The Articles of Incorporation are what you create at Secretary of States website. (in Colorado) This document is a matter of public record. The
Operating Agreement is not.
You will also need a disclosure statement that is between you and your buyer only. This protects you and insures that you are paid for transferring membership/ownership of your LLC. A statement of authority will have to be signed and notarized at closing, this allows the new member to sign the closing docs.
We have never needed to create an EIN number for the LLCs we create to wholesale properties in. (one per property) This is in Colorado, check your state law. Our main business LLC has an EIN number of course.
Then there is the purchase agreement between you and the buyer that allows for non refundable earnest money, the buyers money to be wired to the title company 24 hours in advance of closing and the right to sell the LLC that holds the property to the buyer.
Finally and first of all, you make the offer to purchase (between you and the seller) in the name of the LLC of course! So the buying entity never changes, just the member/owner/manager.

So do some research if you plan to use this method. All your docs need to be correct to start with.

Michael

Michael: Much appreciation for your expansion and clarification on the process. I realized in re-reading my post that I had not given all the information necessary to proceed forward. My additional reason for adding this post is to reinforce to all what Michael is indicating about working with a qualified Real Estate Attorney in setting up LLC's. I'm naturally a do it yourself type person, the first company I set up was done that way. I am eternally grateful that no one sued us, as I learned the risks of having a template version of my articles and operating agreement. Just to let you know, the total paperwork on my initial entity was about 5 pages. My next entity, an LLC that is still in operation, ended up with about 75 to 80 pages to cover very specific situations, and I am much more well protected with this. I have actually been able to use that information to create additional LLC's that are well structured. I have concluded that doing things the right way may cost more up front, but actually saves money in the long run, not to mention the peace of mind. Thanks Michael, for adding the valuable information that you have.