@Eden Avalos I would speak to a Real Estate Lawyer. 

@Brian BabbageIt is possible to avoid the 10% penalty, but it involves getting a 401k lawyer, being in the correct state, Texas is one of them.

For example- in Mexico you can either go or not go with real estate agent, but you def need an attorney, a notary (which is not like a notary in the US- they are lawyers and do the title clearance etc.

My two partners and I are all lawyers who have been working in commercial real estate transactions for the past six years and are finally looking to jump into the investing space ourselves. 

An LLC can be created in 10 minutes for $99 online in my state (Indiana).That all being said an LLC is probably the route for you, but I'm not a lawyer, this isn't legal advice and you should speak to your attorney and CPA to be sure.

A lawyer recommended TD for escrow accounts and working with them to open and close out these accounts is consistently fast and easy.

@Justin Butterfield I am not a lawyer but I doubt It is co-mingling fund to deposit it into the LLC account.

As the Assignee, should we be using our own lawyer, or is using the wholesalers lawyer sufficient.

Once my assets started to grow, I had to start using LLC's - but I was willing to roll the dice early on.Also, I'm not a lawyer and have no idea about PA laws, but check to see if your liability may be different in PA if the rental property is also your primary residence as in the case of a house hack.

The unscrupulous investor will:Have the homeowner sign a Quit Claim Deed in which the homeowner signs over their ownership in the property.Fail to explain to the homeowner that they, the homeowner, are still responsible for the mortgage.Fail to warn the homeowner that they could be violating their “due on sale clause” with their lender.The homeowner is usually elderly or part of an at-risk population (English isn’t their first language, disability of some kind, etc.).The Division advises the following when it comes to these types of rescue transactions:Don’t sign any documents or a deed to anyone until you have had a chance to talk with your lender and an attorney about your mortgage obligations and your legal rights.Colorado has a Foreclosure Protection Act that affords you certain rights when you are financially distressed.It’s best to take proactive steps when you first start having financial problems, and here are some resources that you can contact:Colorado Housing Connects – Colorado Foreclosure Hotline – Colorado Bar Association “Find-a-Lawyer” – Colorado Legal Services – Disability Law Colorado (Formerly The Legal Center for People with Disabilities and Older People) –  Subscriber Services:Manage Subscriber Preferences | Help POWERED BY Privacy Policy