Your realtor or lawyer should assist with proper documentation.

You can terminate the contract for 'good cause' including using for owner occupancy.See also http://portal.hud.gov/hudportal/documents/huddoc?

Recommend you get an attorney to draft your first one to make sure that your interests are protected, the partners responsibilities and duties, are documented, and cost and profit sharing is clearly defined for all the possible contingencies that may arise.You may need to also consult a CPA regarding the partnership tax return that your partnership will need to file.

If you don't have to bring any cash, documents, etc. to closing then I'd have the title company email a copy of the HUD 1 closing statement for review a day or two before just to make sure all the numbers are right.Assuming that there are no issues during the inspection and closing goes smoothly, have them hold your keys until you get back or mail them to you.

From the tenant's perspective if they have given all the required info and documentation then their end of the contract is "legitimate".

Then, you're not dealing with "private money" you're dealing with someone who is actually doing business as a lender.First, find out if this lender is a registered and licensed to do business, you can ask for his documents and get the name the money is loaned in.

I've been pre-approved for the asking price of the property ($24,900), and the mortgage banker at Quicken Loans has generated the documents based on that price.

If it's the former, you should put together a document describing the property, purchase price, financing structure (bank mortgage, private lenders, your own cash, all of the above, etc.), your investment/exit strategy, etc.

Great for doing documents on the go.LoopNet - Free.

As for other gotchas, hiring a good attorney that is well versed in creating syndicates for Real Estate will help to insure that you have all your ducks in a row as it pertains to the documents used to cover yourself.