When I formed my first LLC, I just followed the process outline by the Attorney.....didn't mean I knew a thing.I've seen two sides of it.  1. if they credit you at the closing, the person who sets up the HUD usually only accounts for the original amount, but not the accrued interest (that you are on the hook for).  2.

Accrue [email protected]

I didn't read the article, but this sound really dumb -- taxes accrue regardless of recording a deed and they apply to the property, not the person who owns it.

Furthermore, a holder of a Note will be required to include the OID in income as ordinary interest income for U.S. federal income tax purposes as it accrues (which may be in advance of interest being paid on the Note), regardless of such holder’s regular method of accounting." 

Eventually with improved credit, a reduced loan balance, and accrued equity as the market recovers the expectation is the  tenant buyer can get qualified for a loan sufficient to cash out your seller. 

The ARV is still $300,000 and the reverse mortgage balance, back taxes, and interest accrued are around $160,000.

But will not be the total payoff amount as interest is accruing.

In Kanawha County, once the Tax Deed is sold at auction, the tax deed purchaser accrues 1% interest per month on the purchase price for 18 months.

Especially if it's saving the partnership a lot on interest, I don't think it's unreasonable for him to accrue some portion of that benefit for bringing it to the table. b) If the guarantor/broker I not bringing a lot of personal financial strength and you could get the construction loan anyway with a low LTV, then MUCH LESS.

When you've accrued enough savings for another multifamily, off you go again.