This eliminates having to find an end buyer within a limited time frame, enable you to hold out for the best price thereby earning a greater deal spread, enable you to expose the property to a much bigger market via MLS, and allow you to offer a fast, fast close while your competition is offering a 60-90 day closing.A modified version of this is to use options, placing money at risk for the right to purchase the property at a predetermined price for a specific length of time.Obviously, actually buying the property before you have a buyer lined up does not allow for an inexpensive exit should you have incorrectly evaluated the property value.  

For example, if the house is supposedly $300k now, the lease option is to purchase the home at a pre-determined price in x years. 

You'll get monthly statements that reflect that and you should be notified (not asked) every time there is a maintenance issue below a certain predetermined threshold.

You are leasing house for predetermined time and you have option to buy it at price you both agree on in this time frame

Does that HELOC remain in place for the predetermined 10 year draw period and 20 year payback?

After year one we pay an pre-determined interest payment to everyone, after years two three and four we pay another pre-determined rate and then after year five we pay all the principal back plus interest.According to my research and in reading @Matt Faircloth's book Raising Private Capital this would not violate SEC regulations because the money is not being invested into a common entity.

My conclusion is that people who think they can somehow utilize BK to increase their net worth in some predetermined way are not familiar with the CURRENT bankruptcy laws or have watched too many television commercials by bankruptcy attorneys.  

There is a predetermined sales price2.

In this contract, you also include a set sale price, so when the property is completed, you can buy it from him at a predetermined value.Knowing you financial picture will help too.  

This ensures that there is always a fixed profit element in mind when negotiating with investors so that we make enough to cover liability and expenses.In summary: The rationale behind this practice is to safeguard a predetermined profit margin while negotiating with investors, which would eventually cover their liabilities.