Hello all! :)Someone I reached out to on an off market deal told me that they couldn't sell because they bought the property as a rental in the 70s and didn't want to pay the capital gains. I'm curious if this has com...

This person did not raise any money, they invested around $600,000 into the offering and because they were one of the larger investors were considered a Co-GP because it was a new sponsor and they needed this persons $.

The “buyer beware” philosophy is fine for commercial transactions, but taking “advantage” of home owners when they’re most vulnerable and lack market sophistication is something no right thinking person wants.  

Quote from @Mani Sundaresan: If I’m financing a rehab project with a hard money loan, do I still need to issue 1099-NEC forms to my contractors—given that the funds come from a loan, which isn’t taxable income?

If one is transferring property title from personal name, a Grant/Warranty Deed would be drafted/recorded to transfer title. 

You can also hold money for maintenance, capex, taxes, insurance, or other projected expenses.

I've personally done just about every rehab scenario, properties I've lived in, properties bought as investments and even properties bought at auction.You've gotten good advice from folks on this list.

I bought this property with a private interest free loan from a friend. the person i bought it from need cash fast so i offered them a low cash offer and they accepted.I had enough money saved up to rehab the house with my savings.

For example is a personal loan from a bank is 7.5 % that you could use as a down payment (after its seasoned), and your 401k loan is 4.5% but the 401k is expected to return 7.5% per year the money you save on one end you miss out on the other end basically and if your 401k returns are 20%, then you lose out significantly. 2.

There is definitely more too it than just the money that goes in.