We help clients 1031 exchange into DSTs, alternative investments, and gas and mineral right royalty funds.

., but it's similar to a McDonald's franchise model where you own the real estate and collect the passive income of rent and royalties?

All you need is a rental lease agreement signed and dated + copy of a security deposit and you can use 75% of it - PITIA right away.All other income types require extended periods of time to use in a conventional financing scenario such as:- note or interest income or dividends from stocks - receipt for min of 2 years as shown on tax returns + 3 years of continuance on the note and stocks are assumed to provide income into the future- self employment income - min 1 years of history and 2 years in the same industry with no significant gaps of employment- W2 income or salary - min 2 years working in the industry or higher education(college) in a related field with no significant gaps of employment and min 1 paystub to use income to qualify- Bonus income at W2 job - min 2 years of receipt (off chance to use 1-2 years of receipt)- over time income at W2 job - mins 2 years of receipt (off chance to use 1-2 years of receipt)- contractual income like sandwich leases, land contracts, is similar to the note or interest income above- royalties  use for qualification is like contractual income - min receipt on tax returns for 2 + years to average for use to qualify- alimony is min 6 months of receipt to use the income as a reliable income source for qualification purposes- child support income 6 months of receipt plus min 3 years of continuance or 36 months left till the child is 18 years of age or you cannot use it- automobile allowance from employer W2 - needs to have been received for 2 + years to use- many other types of income.

This includes interest, dividends, royalties, rent from real property or the sale of an asset that has been held over time to produce passive income.Flipping houses is considered a trade or business. 

But somethings like Delaware Statutory Trusts, Oil and gas royalty programs, company managed condotels, and things like that can qualify and still be pretty passive. 

The pros that I see with investing with a franchise company are the business model, the advertising, the ease of borrowing money to fund many projects at once, the tools to evaluate your property before purchase, coaching, plus more.The cons: The cost, ($30,000),  monthly fees, royalty fees, Giving someone else money that can be used to purchase property or renovate.My dilemma is this, I'm 56 yrs old and I want to retire in 10 years and what I don't want to do is tale 10 years to learn from my mistakes I would rather pay the cost to a franchise company that can minimize my mistakes so I can reach that 10 year plan a lot easier.Some of these other real estate guru are charging a one time fee ranging from $20,000 up to $50,000 and then they're gone after 6 months or a year.I have read some earlier post about home vestors franchise so I thought I would ask the question again, Is my scenario valid or am I procrastinating over this issue?

All of the franchised brands pretty much charge a royalty off of the top line sales that way they get paid regardless of how good the operator is.

Hey Jack,You might consider investing in Oil and Gas Mineral Right Royalty funds with that 160k. 

Also, with the oil price being down and considering that 90% of our state's income comes from oil royalties and taxes, I feel like housing prices are going to start dropping with people leaving the state with layoffs.  

You are able to save money on your federal tax return, and state, when you file schedule E, rents and royalties.