New guy questions on agents and attorneys

[Michael Carpin]

Hi,

I'm a new investor with a series of questions on getting started. Here is my short term objective - to purchase a single family home in a decent area that I can rent out a positive cash flow. I will find this property by searching the MLS, driving for dollars, setting up a Craigslist add, or perhaps a targeted direct mail campaign in the area I'd like to invest in. I'm prepared to put down a down payment and use traditional Bank financing, but would also be open to a creative financing arrangement (seller financing etc.) if I could find one.

My questions are as follows:

1.  Should I use a real estate agent for purchasing this potential investment property?  Is an agent normally only used for houses that are listed by other agents?  For instance, say I get a deal on a for sale by owner house and agree on a price for me to buy the home at.  Do I need an agent, or would it be wise for me to use an agent?  I am not licensed and have no expertise here.  Or are for sale by owner type deals usually done without the investor/buyer using an agent?

2.  Similarly, are real estate attorneys used in these types of scenarios?  When I read about deals that use an arrangement other than traditional bank financing, is an attorney always used?  For example, if a buyer and seller come to some sort of seller financed arrangement, does the buyer bring in his/her attorney to formalize this arrangement?

3.  If I have good credit and a down payment ready, and should be able to get a loan, can I tell people that I “pay cash for houses”?  What exactly does that mean when people say that?  It doesn’t necessarily mean they can buy the entire house for cash, does it?

Thanks in advance for any feedback.

Mike