I am in Westchester County NY and I would really like to form a relationship with a broker (direct lender or broker) I am currently looking for a 2-4 family to buy ( hold onto) and I would like to begin rehabbing properties as well.

You are new and you need to focus on the fine details if you want to understand.You are not transferring to the LLC in the weak sense of the phrase.You want to effectively sell and the LLC buy (transfer of title).

I have a long ways to go but look forward with baited breath to the opportunities and challenges ahead.Look forward to developing solid relationships.

I know of only 3 instances where you can buy reo prior to it being listed on the mls.1) Buy a bulk pool of reo (5m to over 100m).2) Commercial property.3) Property owned by a small local bank or credit union that you have a relationship with.4) Attend the f/c auction at the courthouse (Not REO yet).

Hence you do have the ability to protect your position if it makes economic sense.There is no DOS issues if you effectively assume the 1st after foreclosing.

you'll have build relationships in the business.welcome and good luck.

How will this effect investors starting out trying to get a mortgage for the first time?

the challenge seems to be in finding an escrow/title company that will allow the "double escrow" to be done.....for example: there is an escrow open that is required by the lender once the "approval" from the lender is secured....then there needs to be another escrow opened between the "buyer" and the "end-buyer" on the same property....so, "end buyer" comes into escrow with the $300K plus closing costs, closes existing escrow on the property...then the title/escrow officer walks into the next room and applies the $250K plus closing costs to the original escrow to close that one.in theory and once in the past this was the way it was and still should be...but, now as it seems, most escrow/title companies are not wanting to do the "double" escrow for reasons of "full disclosure" to all parties, for fear of not being "sued" for some type of fraud.those of us not engaging in these tactics get penalized.....but, such is life....i have a title company that has stated they will do a "double" escrow but, will need to let the lender know this fact. not disclose the "amount" the "end-buyer" is paying, merely disclose there is a 'double" escrow in effect....well, obviously this should kill the deal right at the very end....so, not a wise direction to take....

A great way to build a relationship.

They may get really cheap when the casino smoking ban goes into effect on Jan 1, 2008.Jon