At the end of the term they exercise their option agreement, execute an agreement of purchase, get approved for a mortgage and take title of the property.Make sure you work with an experienced mortgage broker and lawyer to make sure you do things right for your area. 

We've already started drafting a partnership agreement and will have a lawyer look over it just so everyone is on the same page.

My note investing goals;Buy lowNon-performingHold and collect mortgage payments Resale to an investor looking for performing note Address: 2124 Tullis Dr Montgomery, AL 36111Asking: $42kLayout: 3/1, single family homeArea: CLien position: 1st UPB: $80,968.80Monthly mortgage payments: $719.78Sale comps: $62k Rental comps: $600 per month4 months behind on mortgage paymentsTaxes: $218/year (actual, from county website)Insurance: $217/yr (based on a formula for a home in the 50k-60k range)Here are my thoughts on how to underwrite it: Offer: $28k Fair Market Value: $62k Modified mortgage payments: $650 monthlyPayment upfront: $5kI came up with the 5k based on lawyer fees, BPO, tax for the yr, insurance for the year and servicer fees.

@Brieyon McBride why not have a lawyer just prepare one as opposed to review one?

The ones that I crossed off my list were those that avoided tenants, didn't have a way of getting things done without lawyers, or those that didn't really like people. 

You would need to speak with a lawyer about it since none of us are privy to the agreements.

The lawyer called me and said the title company won’t issue a title. 

Thank you Kevin, inspection first then putting them on a contract, but will I need a lawyer for a contract Kevin?

I am not a lawyer so my advice is directed to having the water-less tank system installed properly. 

Again, every state/county is different but I would:1.Get title insurance2.consult with a lawyer regarding probate concerns/potential title actions.3.get a home inspector and permit history on property.