.- The LLC, which has no credit history because it is new, gets a loan based purely on Mike's credit score and history, since Joe's is bad / non-existant.- The LLC is listed on the title- The LLC's partnership agreement essentially states that all income and expenses related to the property are Mike's responsibility.- "Income" includes all gross receipts generated by the property ($1,000 pm)- "Expenses" could then include mortgage and running costs ($800 pm) in addition to a $200 "management" expense (or similar) to Joe.- In effect, Mike's net Tax obligation would be zero (until the property was sold), and Joe would get an income of $200 per month.

List price $440,00016- 1 br units; one building; upper and lower units1 vacantOn site leased laundry (2 machines)Landlord pays water and gasTenants pay electricRevenue per unit(stated):11 @ 4151 @ 4402 @ 4301 @4201 @ 410Laundry $1100/yrTotal Rev $81,320/yrExpenses (stated):Gas/electric $8626/yrWater $4300/yrTaxes $8000/yrIns $3000/yrYard Maint $1490/yrTrash $804/yrTotal Expenses (stated): $26,220/yr (well below the 50% rule)Tax information: last transfer 1999; 54.2663 mills for non-owner occ.; current SEV $162,400; taxable value current $145122From the listing agent: Nice old lady has owned them for 30 years; built in '70's; currently has one vacancy; all units are 1 yr lease; half of tenants have been there for a very long time (years); other 8 units turn about 1x/yr; great neighborhood; upscale community; walking distance to downtown; roof is 4 years old; hot water heat (LL pays); "A" propertyHave not seen the inside yet, from the pictures I've seen the kitchen/bathrooms are outdated.

I want to purchase and develope with the right partner but could be a year or more before we could start, so my question is how do I tie up the property,options, non refundable earnest money as you can tell I'm a newbie.

I'm trying to see if the property could be purchased prior to the sale.COULD the property owner sign off on the property and then the possibility of going to the bank, and then go to the bank and purchase the non-performing note?

Well… it depends on what state you are in, and what type of foreclosure it is... i.e. judicial or non- judicial foreclosure.In some instances after the lender forecloses, they can still come back after them for a deficiency judgment and try to collect the amounts that they lost.

But, clean up can be the most exciting because you get to see a big change right away, and as you said, non experienced people are scared away from these kind of deals.

She gave us the NROC (non-refundable option consideration) which covered the cost of pulling the property out of foreclosure.  

The 100% financing, Non Owner occupied, investor loans, with the seller paying the closing costs, stated income loans are gone!

Action beats inaction.When I find myself paralyzed by thought, I take a (non-critical) blind step.

Recent purchases by non-owner occupied homes (marketing to landlords)2.