Even though I already had a tenant with a lease signed contingent on closing!

Hi,Somebody I loan money to has signed a promissory note, but not an authorization to check her credit.

He indicated that we were too late in the process to do that since the deposit was required within a certain time period from the signing of the P&S.

So your $6k out of pocket gets you a C Corp and ability to use retirement funds to buy stock in your C Corp.The things I did not consider:- You are an employee of your C Corp, so if you hire any employees you need to extend many of the same benefits to them that you receive, including participation in retirement plan- If you hire employees you need to offer them the option to also use their existing retirement funds to purchase equity in your business- Possible advantage of LLC over the C Corp- Once you sign and speak with your assigned independent counsel they will advise you on the increased scrutiny you face with IRS, need to keep additional records and document corporate meetings, etc.If I had a more complete understanding in advance I may not have gone this route.

In addition, make sure to have an assignment page that will cover you that will have options for you to accept a non-refundable down payment and having a clause for reimbursing you as an assignor for any costs you may incur while placing the property under contract..i.e earnest money or option/due diligence fees.So, if you contract a property with a seller you'll have them sign your contract, an investor buyer sign the assignment page, and place a non-refundable down payment with you to secure the deal.It would be a good idea to create a relationship with a title company or closing attorney that has investor experience to hear what advice they have for you.

. - as I stated in another thread where there was a similar post and similar question in response: you'll probably be told to sign up for some webinar to find out.

Signed,A 22 year stock investor turned real estate investor

Having a tenant in place with a signed lease, when you buy an investment property is ideal, because it gives you immediate cash flow.

Seller countered with 165K, I counter-counter with 155k then we settled on 157.Contract signed and due diligence is in process including thorough home inspection.Rick

Anyways, for this deal the owner reviewed the paperwork with her lawyer brother and decided to bring their own lease document which says that I can bring in tenant buyer if I already have one but otherwise she will not sign the lease option deal and allow me search for a tenant buyer.