That’s all complicated by investment returns being active and the debt write-off being passive and how that effects your tax picture, etc.

It gets more complicated if you then need to borrow even more money to do the renovation.  

In my county it's a one page form, takes about 2 minutes to fill out and they charge $15.However, limiting your liability is much more complicated than simply dumping a property in to an LLC.

It can be a complicated structure and you need to make sure you're doing compliance on each llC and filing the property documents quarterly and annually.

If you insist on an LLC, to complicate your life and waste time and money, why not wait until after the 1031 exchange is complete?

 - Virtually all travel in the area requires boating, which makes even the simplest supply runs complicated - and expensive.  

I approached them because I had a promising deal on the table but needed fast funding without complications.

That said, if she's claiming she still owns the place, there might be an extra layer of complication if she can prove her claims and/or hires an attorney herself. 

Also for some large investment group, for example, pension funds, they have to be in the market all the time, so they have to invest to something that's very large where asset is being secured by real estate.It's just you can find the following condition :In good market you can find 80% GP group to be good Then in next bad market condition, you find those 50% out of 80% good GP becoming bad, so only 30% of the group is performing.In the next good cycle, from those original 80%,50% may rise to be good again.Those guys (GP/and such) are similar to us when we buy/sell rental property, it's just that their problem is way way more complicated than SF buyer.

However, these situations can be complicated, and it's to your benefit to have a realtor on your side (if you don't already) to help you negotiate and stay within the law.Your post was pretty general, which I appreciate, but I don't know if I handled all of the concerns someone in your shoes would have.