It isn't a loophole, it is just the tax law.

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.

Originally under contract with a wholesaler, I resolved complex development issues, including acquiring and recombining an adjacent parcel, to meet zoning requirements under the city's new UDO laws.

Originally under contract with a wholesaler, I resolved complex development issues, including acquiring and recombining an adjacent parcel, to meet zoning requirements under the city's new UDO laws.

I feel like just about every month, I see RE investors with 1-2 year's experience starting a new fund and advertising on Facebook for LP's, as well as the daily "JV deals" that straight-up violate securities laws.

But all of these investments operate under highly regulated and constrained exemptions to securities law, and I have been told it is very difficult to do the above legally.

This may actually be the best method to prevent the sale from being discovered, but of course there are other potential pitfalls.Under federal law a transfer to a trust where the grantor retains the beneficial interest WOULD be exempt from the DOS... but notice how in the context outlined above the exemption would disappear.

The number of private landlords sued for more than their insurance will cover is astronomically low.The best protection: follow the law, and treat your tenants honestly.

If your local law allows it, see what everyone else is doing and go by the norm. 3 months rent is a substantial amount for some, but really helps ensure the financial quality of a tenant.Sometimes I have immigrants who apply who work their tails off and can't afford the 3 months up front.

I am particularly interested in:Understanding the fundamentals of wholesalingNavigating Texas-specific real estate laws and regulationsBuilding a strong network of cash buyers and motivated sellersLearning effective marketing strategiesAnalyzing and evaluating dealsIf anyone is willing to share their experiences, tips, or resources, I would greatly appreciate it.