Additionally, the contract with the wholesaler is set to expire on Monday the 27th.

If a home is titled in a trust (or an LLC), the trust or LLC should be added as an additional insured to avoid potential disputes during a claim.To confirm, we reached out to an insurance carrier, who clarified:“A carrier can potentially deny a claim if the home is titled in a trust or LLC but the insurance policy is under the individual homeowner's name.

@Tyler Speelman Your strategy to assist your sibling with a down payment while minimizing tax liability is creative but comes with complexities.

I know this is a very old thread but if anyone comes across it I wanted to add some additional thoughts that might be helpful.

It’s on the rise but you just have to be selective regarding location and try to go for turnkey or keep it minimal regarding rehab  So you don’t have a nightmare story trying to manage a rehab from Out of Town. 

There are sometimes fees associated as well but they seem minimal and scale well since one line of credit can purchase multiple assets.Interested if anyone else is using this lending strategy and what your experiences/recommendations are.

Consult a real estate attorney to draft a comprehensive agreement that includes clear terms for profit-sharing, buyout provisions, and dispute resolution, ensuring the partnership is mutually beneficial while minimizing risks.This post does not create a CPA-Client relationship.

A Title Company can distribute the proceeds based on the agreement, and consulting a CPA will help calculate tax liabilities and explore strategies like a 1031 exchange to minimize taxes.

In addition to your down payment, plan for closing costs (around 2-5% of the purchase price) and set aside at least 3-6 months of expenses for repairs, maintenance, and vacancies.

Since seller-paid fees usually cover their services, you get local expertise without additional expenses.Final ThoughtsLive where you like, but invest where you can achieve financial freedom.Out-of-state investing has proved to present excellent opportunities.