Looks like the money goes to the Escrow Company so no loss but the seller has to sign to release it. and if the seller thinks they were lied to by the wholesaler ( very common) they will not sign.. and the money is stuck too small to litigate over and if not resolved the title company will file an interpleader with the court and send the money there.

I am very sorry to hear about the losses that others have experienced. 

Hey guys, I look at the benefit of the LLC as keeping a loss from one from spilling over into other LLCs or your personal finances.

Push forward with your eviction and cut your losses. 

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

Do capital gains offset passive losses that the investor has, so someone really isn't paying a high capital gains tax as they thought? 

I then recoup any losses in the resale and down payment forfeiture.

You can probably make up for the perceived loss through the reinvestment in your US business.

The biggest win or loss you are going to have on your STR business will come at the purchase. 

This deduction is related to the loss on disposal of certain assets in your building such as replacing or removing existing components of the building.Cost segregation studies can be a very beneficial tool for real estate investors.