Posted by Charles Clark on January 16, 2003 at 14:46:16:
Yes, Yes, Yes, always have a lawyer with you when you do important things like this. I once almost bought a property, and missed a small detail of "homes can only be build on grade of 30% or less. Well, this was on the side of a mountian, so I would have had a nice piece of dirt that I could go look at.
Be sure to have a real estate lawyer with you.
I think that when you can use your own money like you have, it is the smartest thing you could have done. That is an additional 5,000 you are going to get as a profit. Also, you will be getting a re-finance rate and terms when you are finished and ready to get a permanent loan. Keep asking questions.
Charles Clark
Have contract accepted on first house to rehab.
I will devote full time to this house with my son and I plan on refinancing it when it is complete. Should I look at a swap to avoid taxes?
Do I need to form LLC or Chapter-S or C?
I am using my personal equity line to purchase and rehab to avoid closing costs & get cheaper rate thus saving $5,000. Was this the way to go?
I know I need survey, title policy, and insurance. Should I have an attorney represent me at closing?
Re: First Deal- please advise - Posted by Jasonrei
Posted by Jasonrei on January 16, 2003 at 23:07:17:
I wouldn’t look to swap. Refinancing and holding on sounds like a good move.
You probably don’t need to form a separate business entity. If you do an LLC is probably the way to go.
If this deal has good numbers, the equity line was the way to go.
Having a REAL ESTATE attorney go over your contract, and then the survey, title commitment, and other documents would be a wise move. It shouldn’t cost much, and it would be nice to have the additional peace of mind.