The buyer makes payments to you, and you continue paying your original lender, profiting off the interest rate spread.However, this does come with risks, mainly the due-on-sale clause, which allows the lender to call the loan due upon transfer.

This would have allowed the investor to secure their interest against the asset while also benefiting from any equity appreciation upon the eventual sale (assuming the plan is to flip).

Purchase price: $450,000 Cash invested: $680,000 Sale price: $1,380,000 Bought a tear-down prop.

The property had foundation work done just prior to the sale but continued having problems, even after I hired a second contractor to correct.

•Make sure to research the estimated tax assessment post-sale so you’re not caught off guard with a much higher tax bill than expected.6.

Some kinds of auctions allow you similar protections as a traditional sale.

Where do you find the purchase and sale agreement contracts and assignment contracts and how do you know they are legit?

An alternative is purchasing the new property in your names and later transferring it to the LLC, but this may trigger the due-on-sale clause unless lender approval is obtained.

This is insane that these guys got that large of deposits on a pre sale rental house construction sent directly to them. 

Check out Brian's book The Hands-off Investor on sale THIS WEEKEND for Black Friday.