Posted by S FL. Rich on April 04, 2007 at 18:18:34:
Ok, it is a good idea to create a corporation prior to flipping properties. However, You mentioned that you were “Wholesaling Properties”, which means that you are merely assigning contracts to end buyers. Your liability is minimal & based on the amount of deposit that you put up.
For example, if you put up 10 Bucks – something goes wrong and your end buyer doesn’t close, you’re out 10 bucks, end of story (as long as your contract is written properly).
To answer your other question, one LLC is sufficient for wholesaling. To open multiple LLC’s for the purpose of wholesaling would become quite ridiculous after a few deals. As a wholesaler, you’ll want to be IN & OUT quickly and OFTEN. Now, you may want a separate corp. for BUY/HOLD’s or Rehabs, etc…
Best of luck,
Ultimate Apprentice Program Mentor