This would be my first real estate investment, making the decision even more critical.I understand that backing out would mean losing the $2,000 earnest deposit.

Some wholesalers over charge and don't understand the market and arv or BRRR.

But from my understanding, the captial gains exclusion has two main criterias - you must have owned the home in the last 2 to 5 years and must have lived in the home in the last 2 to 5 years. 

Instead of just addressing the violation, they framed it as wanting to fully understand the requirements because they value the area and are committed to following the guidelines.

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

While this is a great and highly motivating goal, most people are either clueless or incorrect in their belief as to what is required to obtain this “lifestyle”.Understanding of the “how to” get there is further obscured by the misleading, and often patently false “pathways” sold by real estate educational MARKETING companies as workshops, upsold to association memberships, upsold to mentorships.

Instead, start by sharing why you’re interested and ask questions to understand the seller’s motivation like, ‘Why do you think it hasn’t sold yet?’

I understand the pros and cons of both so no real immediate preference.

My understanding is that once I am a partner in the LLC, any money that I put into the property will be tax deductible.

You need to be able to view any of those types of opportunities through two lenses... one is the eager learner that says, "Hey, they are talking my language, I can do this, I'm going to be rich, he has the plan and its so easy!!!"...