It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.Happy to discuss further. 

Originally posted by @Max Gradowitz:I'm in CA and the most common LLC-related question I get is "I live in CA, I want to buy properties in other states, what state should I open an LLC in so I can save money?"

Most can't and that's where money is often spent unnecessarily.

We are so lost as to what to do with the money.

For example, if I send my son money for books, can I do so as a property manager fee so that this is also tax deductible.4) If my son, finds the monthly payment to be to much while he is in school and I end up shouldering some of the costs, how long per IRS rules can I carry a loss on the property.Any help would be greatly appreciated.Thank you.

And, since 2012, after FHFA was back on its feet, the Treasury has been paid an ongoing dividend on the earnings of FHFA. ie the government / taxpayers are making money on Fannie and Freddie, for bailing them out (more on this later).

Now having a trust to avoid probate, care for young children or folks not ready to inherit large sums of money yet are very good reasons to have trusts.

Purchase price: $240,000 Cash invested: $60,000 purchased this distressed duplex using owner financing for $240K and a $60K hard money loan for renovations.

Penalties of these Federal charges may include:30 years in prisonUp to $1 million in finesThey have a "statute of limitations" - (with a third "T"  ;-) of 10 years from the date of the transaction - 10 years from now, you could get a very nasty call and hopefully, you put your reserve money in a good account that grew to cover legal expenses**********************************************And the universe could blow up as Doc says in Back to the Future " But, granted, that's the worse case scenario." 

Pretty easy to make 2% or more when you're spending that kind of money.