Keep in mind your state usury laws and if the buyer is going to live in the property, I would suggest you avoid such an owner carry to avoid the new DF (Dodd Frank) laws and pitfalls that come with it.The question really is, what king of return can you get in another passive investment?

I'd much rather be conservative and avoid potential (and costly) pitfalls down the road.While the rule seems to be plain, I'd like to know how it's actually implemented in real life.

To add to what Karen correctly mentions, there are many new Federal laws, including those created by the Dodd Frank and S.A.F.E.You will not sleep at night once you begin to realize all the pitfalls, rules, and regulations.

Or you can hunt deals and try to get the most bang out of your buck - those can present pitfalls.

I'm sure there are pitfalls I have not looked at yet.

I would be interested to set up a JV agreement with him for just one deal to see how it goes.I am sure there are many pitfalls to consider/avoid.

Any pitfalls we should look out for?

You alone must determine the paths and rewards you desire.Early in both of my mentor’s real estate careers, they chose to invest in residential rental properties.They expressed to major pitfalls; 1) too much reliance on a single target market, and 2) not fully considering all the associated costs prior to making an offer and ownership.Example of a single market; dependency on military tenants/buyers.

I know all about the pitfalls and hold ups that you encounter as a young investor.

I am sure I am missing the devil in the details please help point out potential pit falls.