@Brie Schmidt can't deduct 100%, Joe A. the interest on your excess funds ($5k) is the portion of the debt that will not be deductible under the tracing rules.

Now excessively high fees are on most buyers list, and can turn off a home buyer. 

I have a house I'm looking to wholesale but I have a concern about the roof.It was replaced a couple of months ago and the seller thought that the roofers were pulling permits but I can't find any evidence of permits being pulled on my city website.The roof was a tear off and a secondary moisture barrier was installed underneath.

I wouldn't buy where the negative is excessive. 

We end up returning $1000 - $1500 in excess materials when we do the final cleanup and recoup some costs.  

Of course, the more the merrier in reserves, but anything over 6 months is excessive IMO and reduces your ability to take on new projects.A common mistake I see is buyers not putting the tax credit they received at closing into reserves.

Hello Fellow Bigger Pockets Friends:I just went through a transaction in Newport Beach and had escrow fees in excess of $15,000.

Hello Fellow Bigger Pockets Friends:I just went through a transaction in Newport Beach and had escrow fees in excess of $15,000.

The override would be on all distributions and excess returns upon sale once all initial capital had been returned to investors.  

[This is the weak point where your friend could take your money.]Do NOT receive the refinance loan proceeds from the title company (except proceeds in excess of your friendly loan, if any and normally not).Refinance loan proceeds must be sent to your friendly lender otherwise two things occur: 1) the refinance lender and/or the title company gets suspicious this is not really a refinance, which may kill the refinance loan and; 2) you don't get the discount on the title insurance due to buying title insurance again within a short period due to refinancing (in Texas) because you’ve tipped them off that you’re not really refinancing.