What if a friend and I set up a reciprocal lending arrangement w/ our respective IRA's?    

Also I have them sign a subcontractor agreement, W2 and explain the payment arrangement.

The duties or rights and responsibilities of each of you can be detailed out in the LLC operating agreement.You can use her credit, if she goes along with that arrangement.

I'll start on my approach.Disclose this to your broker before doing anything, you will be buying, taking title to avoid a net listing arrangement and disclosing your position.Value each property and see what the income is.Your offer to take them all in one deal certainly saves the seller time fooling with peeling these off one at a time.Make sure you disclose you are a realtor and that you would be acting as an investor, but in so doing, still assisting her making it a clean transaction...The initial idea is to buy them all and thereby putting you in a psoition to payoff those properties sold with the proceeds going to her.

It's why banks don't follow this arrangement as they did in the old days.To obtain profits, you need to participate in the partnership, active or passively, and loan the money to that entity, not as an outside lender.

The property is fully rented, needs minor repairs and appraises for 120k but this unit is keeping me from getting financing.If I give the owner the 25% and arrange for a balloon payment, do I still make him monthly payments?

My advice would be to arrange a meeting between you, your contractor, and your lender (assuming you're not paying him with your own cash).

In most cases, the condos were in some stage of foreclosure by the bank holding the mortgage, then that foreclosure either simply stopped or was discharged.

This question probably sounds extremely basic and silly, but I'm still at that stage - lots of silly questions.

This is all about rate and term, so let me arrange it that way.