I was thinking of a 6 month lease option contract giving the lessee (whether it be me or I can sell the lease option contract to someone else) the right to construct a new structure on the property.

Hedge fund managers can afford to take huge risk as the fee structure is very unfavorable to the client.

The main problem you will encounter in this type of scenario is that the tenants probably are used to living without the usual structures in place.

Now the project details..Project in CA: Existing structure has to be demo'ed and new homes have to be built.

We have no problem backing up the loan personally, but want to loan to be in the LLC's name if possible.From what I have found you can't really get a mortage structured like that.

I have had foundation repairs on my properties that cause plumbing issues that cause structural issues, etc.

But the nut grows a lot faster that way as far as I can tell.I've run scenarios with equity investors and that seems like it would be more attractive from an investor point of view but that's where I'm not sure of the structure used by others in determining the return for the investor.

Granted, that accounts for demo of the existing structure, but it does not account for the cost of the land which is typically a little more than demo costs.

In addition, do you have the right kind of entity structure that minimizes the self employment taxes you pay on business income?

3)Should we buy the property through a conventional loan and then moving it under an LLC or other business structure?