Everything is done other than signing the docs at this point so will take your advice and talk to a lawyer and for sure the asset manager at B of A.

I cited Malkiel's work and countless studies done over decades and all of the geniuses (MBAs, doctors, lawyers, etc.) swore up and down that they were too smart for the rules to apply to them!

You need to speak with a lawyer for the answers in your area, but as far as your first question is concerned.Do i get the original seller to sign something This should have already been done!!!!!!!!!!

The best technique I know of is to start with people you know -- doctors, lawyers, and other high-earning professionals with lots of money but little time to focus on investing.This will also help you avoid the securities issues Bryan mentions above...

But there's no additional licensing requirements just because you're running an LLC.LLC paperwork should be drafted by a lawyer to get it right - skimping on this could cost you later on.

You could even write the check from your personal checkbook, credit contributed capital and debit the expense in each LLC if you like.In your example, as long as you've got the required support (billing), nobody's going to care how that expense gets allocated through the LLC's come tax time.While, I too, can proudly declare I'm not a Lawyer, or a CPA, I do work in large companies, and have done cash accounting and inter-company accounting with boatloads of legal entities in multiple countries, holding companies and the like.

Does the seller have a lawyer or is he just working with a Realtor or the bank directly?

We are actually in the process (its all in the hands of the lawyers at this point) of some corporate restructuring to make it possible to bring investors in, Joel.

Finding a fully performing property especially at the 50% suggestion with multifamily is a non starter.A trophy property the owners will demand a premium.The typical buyer is a doctor,lawyer,etc. who wants a newer property in turn key condition to us as a tax shelter.They don't really need the income all that much.What I see most investors going after including myself is value add deals.Where you have a burnt out landlord or a property with deferred maintenance or both.Some people have more money than sense and do not make good managers.The value add deal is where you can create equity and cash flow the quickest.Many investors love apartment foreclosures from banks.There is no emotion like from a regular seller but also there isn't usually as many ways to structure a deal.So each avenue has it's pluses and minuses.If you talk to banks they are hoping the market gets better.If you talk to buyers many say we are still in a recession and will not pay the banks prices based on over inflated appraisals.So what you have is a stand still in the bid-ask gap pricing.Some product is moving but not the kind of volume to turn the market around yet.If you want start out with one house and build from there.I agree with everyone on the fees.The contractors will suck you dry.You have to know what work you want to do and not to do.I tell contractors I want investor pricing and that I am very cheap and want a deal.If they are looking for a retail deal don't even waste my time.Between plumbing,electrical,pest control,lawn maintenance,and on and on your cash flow can go out the window real fast.On my apartment building I have a cheap handyman mow the grass and do minor repairs.Grass company wanted a one year contract and 210 a month!

My personal opinion is twofold on the subject: 1)I follow the state regulations as it pertains to my contracting business. 2)The hazard posed by asbestos is real, but significantly over stated due to liability caused by lawyers chasing lawsuits.