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They will continue trading the ones they have as LLC holding companies.

This guy wholesales ;)

I recently worked on an MVP for a Zillow-for-wholesale startup. As a curveball, our state passed a law restricting where and how these contract-to-buy sellers operate. So their workaround, after consulting lots of lawyers, was to provide a standardized LLC / Contract flow such that you’re no longer marketing a house for sale. You’re marketing a stake in an LLC, only that LLC has a sole purpose (a contract to option out a specific house).

I didn't know about this use-case. But this is also what investors do with real estate in California because Prop 13 resets the taxable value on a real estate sales, but not on buying an LLC that holes the real estate.

Then expand the definition and scope to make it more painful to circumvent. Describe the structure such that it’s hard to not be able an individual non-investing homeowner.

Of course that’s unpopular to those who want to freely commit to bad practices.

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