Assignent Deal

[Cantrell Jenkins]

Goerge/ Bob

In order to submit deal for assignment, would I need to have LLC in place?

[George Roddy, Jr.]

Cantrell,

My question to you is who are you submitting the deal to?


If you are writing an offer with a homeowner, then I would say No.

If you are writing an offer to a Bank then I think the answer is YES. You could write the offer using an LLC, and then sell your membership interest in the LLC to the end buyer (cash investor). The only problem that I see with this is the bank will want "proof of fund" from the LLC. You could get this "proof of funds" letter from a private lender or hard money lender.

Maybe a better solution is to create a TRUST (avoid the $350 filing fee that comes with the formation of the LLC with the State ) and then assign your beneficial interest in the TRUST to the end buyer (cash investor).


Food for thought.


George

[Trey Bolen]

George,

Do you suggest writing an offer on an REO property in a trust and assigning the interest to another investor? Or is a double close a better option with a REO?

[George Roddy, Jr.]

Trey,

Most banks do not like the verbiage "and/or assigns" in their contracts. In this instance, I would recommend you create a trust and then assign the beneficial interest to the "end buyer".


Thanks for the question.

George