To follow up:1) The reason books say to put the beneficiary in your name first and then assign it into your LLC is that some states view the transfer of a trust where "grantor is not also the beneficiary of the LT" as a taxable event.

Every month, he will prepare a detailed statement of expenses and income, and send me a check for the net amount of my share, which I presume is taxable income.  

This will result in taxable income."  

🙂There are three components in your monthly payments. 1)  Return of your basis (non-taxable) 2) Gain (Sale price - basis) (Taxed at a capital gain rate) 3) Interest per the rate that you have specified.

The fees however are worth it if you have enough taxable gain to shelter. 

If properly drafted, the house would still be part of her taxable estate, and as such, upon death, you would get a step up in basis.I have some advanced trust and estate planning with my clients, as many other professionals do as well.

I thought I'd run it past my CPA just to be sure nothing weird would happen or taxed.Sure enough, he said this would be coincided a taxable event and I would have to pay tax on the difference from the REO purchase price and the loan amount.In his opinion, this is a gift from the LLC and I would personally pay tax [at the highest rate] for the equity.I've been meaning to post this question but haven't had a chance.  

The Land trust appoints the LLC as the trustee, the trustee uses the brokerage firm to buy, trustee hires project management LLC to renovate, brokerage firm sells, leaving the Example LLC with no taxable income as it is all expenses.

As others have mentioned when using depreciation of the property and capital expenses, mortgage interest, and operating expenses your taxable income will be less than you may be thinking To speed up or enhance depreciation you can always cost segregate the property( talk to a Cpa) because it usually isn't worth it on single family properties.

You will also want to know what strategies they employ to reduce taxable income.