To me, this is equivalent to looking at someone who got a job working at Google back in 2002 and now has $100M and saying, "I just want to duplicate what he did...so I'm going to just get a job at a random startup so I can make millions as well..."

Marie Poe was a panelist and we all had a lot of fun that day.The difficulty with buying property at auction (or the equivalent of) that uses a bidding process is that it squeezes profit out of the deal.

To mitigate the risk, if you intend on living in a high appreciating area, you should first consider owning with a 30 year fixed rate Mortgage to lock in your "EQUIVALENT RENT" and prevent yourself from being Priced out of the Market.Had Steve actually bought his Apt here in NYC in 2004, he would have locked in his monthly payment AND also made about $1 Million or so in Appreciation.

If your new mortgage is $50k more than your previous one (with equivalent rate/terms), of course your repayments would go up!

The equivalent of an ambulance chaser.

Profit Available for Distribution, if and when available, as determined in the sole discretion of the Managing Member, will be allocated to the Members in the following order and priority:(a) First, to the Members, on a pro rata basis, until each Member has received a ten percent (10%) Annual Rate of Return on its unreturned Capital Contributions;(b) Second, to the managing member until reaching the amount where the total of (a) and (b) are equivalent to (i) Sixty percent (60%) pro rata to the Members and (ii) forty percent (40%) to the Managing Member;(c) Third, (i) Sixty percent (60%) pro rata to the Members and (ii) forty percent (40%) to the Managing Member.In this example, there is a "catch-up provision" where the investor gets a 10% pref first, then the managing member gets an amount that brings the total distributions to each of them to 60/40, then if there is anything left it is split 60/40. 

I don't know anything about your area but buying a $400-$600k house needing only the work you describe (and what is supported by the pictures) for $21k is the equivalent of spotting a unicorn.  

As a member of an LLC making a profit, your friend will have a duty to report and pay taxes on the profit and must have an ITIN (the equivalent of a social security number) in order to do so.The LLC will also need to withhold 25% of the profits before remitting them offshore, which your friend would then report as a payment on his behalf when filing his tax return.I just helped an Australian national set up this exact same situation and am working to set up a system for Chinese nationals to do the same.  

Some of these programs are the equivalent of a few small rental properties!

When hard money loans are anywhere between 2 and 4 points PLUS 10-15%, I'll take a plan that is the equivalent of 1-5 points (mostly 3) and 0% any day of the week.So takeaways:1.