Like I said in another thread, my experience buying a REO is they're much like buying from any other source except they're truly as-is and the bank will make you sign many legal documents and forms attesting to the fact that you accept that.

Every state has very different guidelines for tax and mortgage sales.I would suggest you contact Prohabber.

It will explain to you how you can (legally) reduce your tax liability.

I've used this for distribution of legal documents...It can't hurt to try it out, since it's free.Deborah

We want to help you with all the paperwork, legal assistance and procedures, financial requirements or just anything that the process may require; working together with you from the very beginning, because we know time is important to you.

Is it legal to do this and still claim all of the deductions?

I just need to know where to find out the legal aspects of what you can and can't do in lending private money.

I also am an proud entrepreneur and Manager with Pre-Paid Legal Services - a service I believe every investor should have to help protect their assets and their families as a result.

At closing they issue me a legal binding purchace contract with a delayed closing date of 12- 24 months.They then lease option the property.They give me the payment guaranteed 5 days b4 due date.

However, with rehab complete, renters moving in at the end of the week, we hear back from our mortgage broker that the Fannie Mae guidelines require the house to be held for 6 months if there is a lien on the property (e.g. our hard money loan).