It's easy and inexpensive to do using Legal Zoom and I'm sure there are other similar services you could look into.

Sept. 20, 2002)(stating that formation of LLC to avoid personal liability is perfectly legal, and refusing to pierce veil of LLC landlord and hold members liable for overcharge because corporate status or nature of the business organization must be used to perpetrate fraud, and LLC status of landlord was irrelevant to tenant’s payment of rent).Collins v.

Any legal issues?

If not, you can not factor it into the exit value, buyers will not pay for illegal square footage or additions/upgrades, it only becomes a bonus for a buyer, it will also not be counted for appraisals.That said, if you do plan to get this on to title legally, you will incur permit costs and holding costs due to time delays waiting on approvals, inspections, changes, etc. - Food for thought as time is your enemy on rehab flips so make sure you factor holding time in your budget, but do not borrow more than you will need as that too will increase your costs.

Then then will use their legal knowlege to "extinguish" the note and sell the property.

With the stock market you have virtually no (legal) control over which direction a security goes.

Four state associations are seriously considering forming captive finance companies for their smaller members to offset the cost of getting legal and compliant when seller financing homes.You might want to talk to the association in your state to see if they are considering this, or in the process of setting it up.

(Not legal in Illinois and six other states - impractical in 10 others.)Solutions are out there, but they are complex and require training and education to utilize.

:roll: If you do it right and ethically to a qualified buyer who has a chance of performing (seek your own legal advice) you will sell it, have it refinanced and be rid of it!

I don't see it as making a living but stealing and committing fraud disguised as a legal operation.I believe as I am sure you do that they should be prosecuted to the fullest extent of the law and imprisoned for committing such acts.It's simple if you do not perform a service as promised you should not get paid.