In a class c neighborhood you need to consider that move-out costs are going to be much higher, because it is going to be very difficult to attract a tenant that is going to pay the right amount of deposit.

But ideally, we lock up the property with 10% down, and once the end buyer has given their deposit, the lender's funds would purchase/close on the land, fund the construction, and once complete sell the house with the previously purchased land as a typical spec house.

IF my father wanted to offer anything, I suggested he get (going rent in the area for 3/2 is 900) $1,000 per month for the 3 months up front, and then $1,000 for the deposit ( essentially money on the side in case the person has to be evicted) and see if they have the money to do it.

This is when I get the excuse as to why its not paid and when it will be deposited.

I'll want to see checks deposited in the note holder's account from payments that were made.If it were a note made by a broker with cash, most all of that info, along with an appraisal is in the loan package.

Originally posted by Wayne Brooks:The buyer needs to know what you are assigning to him, what contractual terms he is agreeing to.Could you give the buyer a COPY of the contract you deposited with the title company?

I would check into whether there are any existing convictions or judgments for this contractor, particularly if any were for taking deposits and failing to do any of the work that was paid ("theft by deception" is one of the charges for that).

Did he receive his full security deposit back after he moved out?

You also need to have a fuel deposit if it is oil or propane.

We were concerned about whose name to put the utilities in, and requiring a utility deposit was the only way we knew to ensure last-month coverage.