Maybe your description is overly simplified but based on the information provided, I don't see how you make money.You are paying today for tomorrow's equity.

@Nicholas Lohr, how we handled this in 'simplified language' in our LLC Operating Agreement is this, using rounded number for simplicity - 1) We bought our rentals based on a price of "100 times monthly rent", meaning a duplex bringing in $1500 a month cost us 150K. 2) That is also the price we agreed to value them at if/when someone wants to sell their share.

But I need you to simplify for me is this is all new to me.Sell the house let's say for 3.5 mil.

Mostly because of your ignorance and lack of understanding of the program.Again let me simplify this for you...

note: this is the paragraph I read in wikipedia in their article about double closing: "To simplify the transaction, the middleman may make one settlement statement directly between the purchaser and seller and take his profit as a line item on the settlement statement.

(that make sense)I apologize if I over-simplified or confused any of these steps.

(In our case it was a local credit union.)2) We set up the out of country investors with an attorney that could/ would handle setting up a company for them to purchase real estate here in the USA.3) We than took the newly set up company to the portfolio lender and qualified for a portfolio loan.4) Sold properties to the investors (company).I have really simplified the process, but it took some time and lots of efforts.

Here are two very simplified example contracts:Contract A:Sales price = $100,000Buyer finances $100,000Net to seller = $100,000Contract B:Sales price = $100,000Buyer finances $10,000 and pays $90,000 cashNet to seller = $100,000You are right in that both "net" the seller the same amount of money.

This is an overly simplified example where all of the houses are the exact same (this almost never happens in the real world), but the general principle holds true regardless.Reading Sales Data and Making AdjustmentsFirst of all, for the purposes of personal due diligence, don't try making all kinds of adjustments to your comparable sales.

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