These service contracts generally cost $300 to $600 for a year-long basic-coverage plan that includes items like ceiling fans, water heaters and furnaces.The contracts come with loopholes.

@Michelle Martin I am a relative newbie as well and have learned a TON from reading Garrett Sutton's Book, Loopholes of Real Estate.  

This is called a loophole.  

I would suggest you take a look at the OIO webesite (Overseas Investment Office) - it is part of LINZ and is responsible for regulating what kinds of investments can be allowed by foreigners: https://www.linz.govt.nz/overseas-investmentIn the past few years there were loopholes in our laws that resulted in a swath of foreigners that bought up large numbers residential properties to hold and sell a wee while later.

Then your kids inherit at a stepped up basis and depreciation starts all over again and they decide to continue on this same financial freedom plan and NEVER do a straight sale and keeps 1031 exchanging or refinancing, they can defer, defer, defer and die too.You need to start by reading Multifamily millions  by David Lindahl, Loopholes of real estate by Garrett Sutton advisor to Robert Kiyosaki and listen religiously to Del Walmsley's at Lifestyles Unlimited.  

It's quite frustrating.One popular and completely legal loophole is to have a spouse who would qualify as a Real Estate Professional.

I wouldn't recommend paying $1 more than you have to - but, may I remind you that depreciation is a phony loop hole - you are already getting a shelter that many others aren't.The tax code is a piece of junk.

But we don’t have to go through any of that yet because wholesaling is legal.If you looked up the law a mentioned you would see at least in California, the law is pretty direct and clear cut no loopholes.

I think the loophole is in the double closing since you would basically be buying the property for yourself and then selling the property for yourself (simultaneously). 

Feels much more credible and less likely to be "pierced" with a high quality lawyer backing the entire lease, they would know every state law and loop hole to look for. hmm??