OfflineFor those of you who don't like paying for transactional funding and capital gains tax on REO, Short Sales, Fannie Mae, Freddie Mac, HUD, properties, using a disposable LLC is an outstanding option, but what document do you use to make that happen? Attached is the one that I would use that I got from Max Staples and works very well.
Hope this helps!
Dave
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Sale of Business Contract.docx (10.37 KB)
This is a highly generic form, I would take it to a REI attorney and have him ad the many items that need to be added when selling an LLC that holds a property within it.
Many buyers are concerned that the LLC they are buying may have debts other than the property, that wording needed to be in the Doc also.
My form is three pages long!
Just my opinion,
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Hi there, I maybe out of topic but maybe you can help me. Do I have to give a copy of the LLC operating agreement to the Closing Attorney? He is asking for it, I am the sole owner of the LLC and I do not have agreement. This is my first and do not know. I was thinking not to use the LLC for that property no more because of that requirement. What is your opinion? Thanks for your help!
Yes you do have to supply the Operating Agreement.
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
can't you just amend the LLC, with each state's specific requirements, where you can add the buyer's name as a managing member, and then remove your name from it?
Valerie
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As coaches, we are required to refer you to attorneys for any legal advisement. So now that I've done that, if you are in need of a quick operating agreement to put into your LLC's files and to have available if requested for closings, here's a link to one that you can use or modify as needed. The limitation is that you cannot complete it and save it, you would have to print the completed document, and then scan it to save it on your own computer.
I am not certain if you must supply the full operating agreement, but you will need to supply the header page and the page that authorizes the acquisition of properties for the LLC, and the signature page. You may also need to create a letter as well that is signed by the managing member(s) of the LLC authorizing you as an individual to acquire properties, and sign documents and checks related to the acquisition of properties for the LLC.
Here's the link for that Operating Agreement Template:
http://www.northwestregisteredagent.com/pdf/operating-agreement.pdf
Dallin Wall
Real Estate Training Team
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