**Default and Foreclosure:** If the borrower fails to make payments as agreed upon in the loan agreement, the lender can initiate foreclosure proceedings through the trustee.

They get in the door with a "cash offer" without cash.Wholesalers fail because they have the wrong why.

Just some thoughts.PS the 50/50 is for when all else fails.

(I had written this immediately, but apparently failed to 'Post Reply!'

@John Michael RobersonI agree with @Kory Reynolds: tax-wise, it is a workable plan, as long as you are hands-off, which in technical terms is known as failing material participation.I would caution however against focusing strictly on taxes.

In other words, if it were to fail, there is no fall back. 

Consequently, sellers often overestimate their property's value, failing to recognize its actual performance.Moreover, if the property requires significant repairs such as foundation work or a new roof, it may not qualify for long-term financing.

The tenant fails to pay their last month's rent and leaves the place needing new flooring and paint.

And remember there is always another one - if you fail to prepare then you prepare to fail...and as Henry says - start small and make your big mistake early.

My fix & hold markets for Q1 '24:TallahasseeIndianapolisVirginia BeachAustin Well, I failed three of these four.