The question is how do you treat and report a sale, exchange and subsequent purchase when the legal ownership differs from how you have been treating and reporting it for income tax purposes and would the IRS or state audit agency agree with that. 

really as simple as that.now there are credit card schemes some will charge you money for .. that get you to all at once grab a bunch of credit cards that have teaser rates of 0 interest with the idea that you can flip before the first payment comes due... but getting a bunch of credit then maxing out the cards will crater your score.. so be careful there and if you have an issue with what you used the funds for you now have a bunch of consumer debt at high interest that could bury you.. so be careful.. there are no Zero % loans and for most starting out its even hard to get a HML.. which will be 16 to 14 Apr with at least 20% down plus points and fees

We always use our attorney to submit the contracts we have to the contractors attorney.Any & all draws are subsequently approved through the attorney after each sub-scope of work is completed to our satisfaction. 

The more equity you can squeeze in by buying and rehabbing right, the easier it becomes for each subsequent cash-out, ensuring your equity for the NEXT Repeat!

That means that if somebody bought the lien in 2015, they did not pay the subsequent taxes for the next year.

But when it cratered oh man.. these folks had no reserves they could not afford a simple turn over they were totally under capitalized and as we know turn key operators in those days did not sell A and B class so the assets just did not perform on a razor thin budget and then the defaults happened.. and there you go the ugly cycle.

The option deposit and any subsequent money that was going to be applied to the purchase price is also forfeited to you.

I may be way off base but I believe once that first deal happens and that experience is gained, the subsequent deals will be easier since you have that experience and confidence, and you're goal will be much more clearer which may make you adjust that goal. 

Account Closed  also I have determined that real estate brokers or agents are far better risks than the average person looking to get started.. the looking ot get started is your highest risk and I would only do that if they are local and I know I can drive up and take over when they crater

The more sophisticated attorney's know how to do this, one of the advantages is that no funds are exchanged in advanced and the original seller does not have to be made aware of the subsequent transaction.