Posted by samuel reed on June 18, 2008 at 08:56:53:
this is true. I would have my personal property in a trust as well but for the most part seeing how you put it, it does make sense to wholesale properties in a company name.
What name do you use when… - Posted by C.T. Austin
Posted by C.T. Austin on June 11, 2008 at 16:06:59:
As a Wholesaler, is it more advantageous to use your name as the buyer on the contract to purchase or use the name of your company (LLC, etc…) and Why ??
Thanks for any input …
C.T. Austin (ATL)
The company name. - Posted by Caliban Darklock
Posted by Caliban Darklock on June 11, 2008 at 23:46:02:
The company exists to shield you from personal liability. If you use your personal name on the contract, there’s no shield.
Re: The company name. - Posted by sam reed
Posted by sam reed on June 16, 2008 at 21:43:43:
When it comes to wholesaling it doesn’t matter about being shielded or protected with properties because you don’t plan to hold the property and when you don’t hold a property(when you sell it right away)you don’t have to concern yourself about any liablity since you’ll only own the house for a few minutes or so.
This is a common misunderstanding. - Posted by Caliban Darklock
Posted by Caliban Darklock on June 18, 2008 at 07:32:26:
The protection isn’t for the property you’re buying NOW, but for other property you may own.
If you wholesale the property under your personal name, and some party to the transaction sues you, all of your personal assets are exposed to the lawsuit - the home where you live, your car, your bank account, your stock portfolio, any and all businesses you own.
Wholesale it under your company name, and only THAT company’s assets are exposed. If this company ONLY wholesales properties, and therefore has no assets, there are no assets exposed at all - and people will probably not sue you in the first place. If you only have partial ownership of this company, you likewise only have partial liability for any judgment.
The name on the contract is who gets sued if something goes wrong. Don’t let it be your name. Make it your company. You can always start a new company, but there’s only one YOU.