John, do you have experience with Fort Worth bankruptcy court?

Between discharging the debt overhand in bankruptcy and the improved tax base, what has been an impossible situation will be manageable.

The failing Blockbuster chain was purchased by Dish Network in 2011 in a bankruptcy auction for $320 MM.

Just to add one more thing to all this, I found the owner filed for Chapter 11 bankruptcy in 2009.

The Hold Harmless won't do you much good if your seller takes bankruptcy or doesn't have a pot to spit in or a window to throw it out of.It might be better to buy into the existing LLC, divide the property under that Operating Agreement and take care of the transaction inside the LLC.

As it was money that you received the benefit of.Typically it will be included in the AGI on Line 21 if not insolvent(negative net worth exceeding the cancelled debt), in bankruptcy, or qualify for another exclusion

Look out for bankruptcies too.

I honestly don't understand how 1031 works well enough even after reading up on it.There's more to this story and I'm just keeping it brief, but there are mysterious bankruptcies and other facts in this failed transaction, all of which helped the buyer escape or at least scare my brother into signing a release.

You might not have $70k cash laying around just yet.If the numbers all check out, and it's truly a 60%-of-ARV deal, there is enough meat on this for you to come out whole under all but the most adverse of circumstances that might occur (i.e. bankruptcy, lawsuits going back and forth while property sits vacant and gets vandalized, etc.)Also, it's a great opportunity for you to learn the rehabbing business.

She says that she has also talked to lawyers about filing for bankruptcy but that it is not applicable to the this particular probate situation?