If you have people already interested in investing with you or partnering with them then I think that could be a great opportunity, but if you have access to simple debt, or can make the purchase in cash with the HELOC, and the returns meet your criteria, then I'd always prefer to go that route vs the other peoples money route.  

Expect a foreclosure suit from the lender.....extremely doubtful the debtor is trying to reaffirm/keep this debt.

Debt-free investing in real estate is unconventional, and traditionally reserved for those who: a) are restricted from using debt, or b) use it as a competitive advantage such as we do.As many BP members know (and will scream from the rooftops) debt is an efficient use of financing to maximize your cash on cash return.

The upside of this is greater flexibility for the borrower and for those that want that level of far reaching capability while the downside of taking on this greater risk is that our rates will not be like an internet lender operating out of a cubicle.Fannie & Freddie have gone back and forth as to what constitutes a "financed property," but one interesting fact that I've field tested is that if a property is owned in a LLC and the debt or note is secured by your LLC then it does not count in the 10 or 6 count above.

I am receiving property through a probate court and want to know the best way to structure a new business entity that would protect the assets and reduce tax/creditors/debtors payments.

When a debtor/mortgagor is in default there are several guidelines that lender/bank must follow.

If you have the $50k to prime the IB pump, it is simpler and more direct to reduce the debt or buy good real estate. 

It's easy to bootstrap large sites by starting small and rolling your profits into infrastructure, inventory and employees.In physical real estate, there is a large startup cost -- either you're paying cash for property (in which case you're spending a lot of money), leveraging heavily (in which case you're servicing a large debt) or somewhere in between.

As a landlord, the immediate deal-breaker for me has always been the laundry-list of rules and regulations I'm required to abide by if I participate in the program; however, the agency is under absolutely no obligation to remedy debt or damage created by their voucher-holders.

I have one where the debtor's been sub-performing for almost four years.