So starting out, I have my list of buyers and tenants, I have a title company, I have the contacts such as assignment, land, etc... I even was granted a pre foreclosure list from a title company in a favorable area in Arizona. If I am interested in completing land contracts with distressed homeowners, would it be wise to establish an LLC?
You might want to think about getting E & O insurance just in-case you do something wrong.
@Joe Gore thank you for that info! I honest to goodness have never heard of that before. It almost sounded made up until I googled it.
Thanks a million...or 10 million haha
Most investors dont think about it until they get sued.
I will call for rates. I almost feel fearless with that enabled. I'm curious until when they won't cover me.
That was my way of being funny...I can find a way to split iron. Now that I know a little more about the coverages they offer, I think I'll be just fine.
@Joe Gore just gave you the best advice...
You have to be careful with land contracts and selling LLCs and dealing with pre-foreclosures...I was completely breaking the forclosure laws in my state, and i almost got sued big time. Horrible experience. I had dozens of people after me...and if one of them would have pressed the issue i would have lost big...My advice to you would be to stay away from contacting distressed owners directly and find a real estate agent who can intiate short sale...Its a very slippery slope. States do every thing the can to protects distressed home owners...read up on it before you deceide to move i that direction...
Get your E&Os thats great advice..
There are two ways to look at insurance like E&O. The fact that you have it gives someone a reason to sue. If there is no dollars or deep pockets at the end in sight your kind of like the deadbeat tenant the landlord is not going to spend any time and money on chasing what is owed.
I assume Jason's California troubles were due to not being familiar with the equity purchase laws of homes in foreclosure. Law doesn't apply to buying a home your going to live in but does apply to investors. You need to use contracts that give seller a five day right to cancel along with other requirements. Don't need to use an agent to do these deals, just become familiar with the law, probably 70% of them aren't familiar with that law anyway.
@Brian P. My advice was the intial contact of individuals in distrssed situations, its important to know the laws on how to approach them. Im clear on the many different ways to purchase distressed properties. But a simple letter to a distressed homeowner with 3 or 4 out of place words can get you a nice size lawsuit....
Thanks all for your advice! Let me know if you would like to be on my buyer's list for Arizona!
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