They are essentially a MLM scheme (i.e.

What are the tax ramifications of her giving me 1/2 the profit since the house would essentially be in her and her husband's name?  

This works well and we've developed a good relationship with the inspectors and planning office.However, if you purchase a property where prior work had been carried out w/o a permit, you cannot get a building inspector to look at it ... essentially, if they did not issue a permit, they are not coming to inspect.

These are the top things we change:Add a bathroom if you can near existing plumbing. i.e. add a Master Bath if a wall is shared with the hall bath.Update the kitchen: cabinets, fixtures, appliancesUpdate bathrooms: cabinets, tile, toilet, bathtub/shower if neededPut in pergo or wood floorspaint everything inside and outchange any non-modern light fixtures and fans.Don't pick fancy and expensive stuff - you start to get into personal tastes.

A few other questions I would like answered is the number bed and bathrooms and th egeneral condition of the property. 

When he go to the property finds no kitchen cabinets, no bathroom cabinets, without some floors without many things were there when we went to see it.

Essentially, by doing this, setting up an LLC offers you no protection if the corporate veil can be pierced easily.While it's a hassle, keep LLC expenses in the LLC.  

I submitted my original offer on and AIR  form and received pushback from the listing broker.They didn't have an issue with us representing our sleeves but did request we resubmit the offer on the commercial CAR form.After multiple email exchanges I picked up the phone and essentially told them the buyer, and entity I control, had made an offer on the form of their choice and it was within the scope of their fiduciary duty to present that offer to the seller, in this case a local bank.I was told they could only work on CAR forms because it was a mandate from their principal broker, and "require by their E&O insurance carrier".I simply informed them that their broker did not have the option to mandate the type of offer a buyer could make, and E&O insurance doesn't cover contract type rather it covers professional conduct.Reluctantly they submitted to the bank.

This fraud essentially undermines any previous confidence in the entire financial system.

The property that we are looking to purchase is currently a 556 sqft, one bedroom, one bathroom home on the market as a short sale.