I think part of it is these cases are complicated.. so hard and time consuming to prosecute.the one I have first hand knowledge of here in Oregon.. its the IRS that ended up taking it on.. these guys take this money but don't pay tax on it.. that's tax evasion money laundry and wire fraud..

Once you clear the 2-yr mark of living there yourselves, you can likely use the full $500k.Disclaimer: I said likely, because there could be a mountain of complications, as well as some different opinions from my peers.

Lawyers may have to be involved, thus delaying and complicating the process, however, as long as nothing was done with intent of causing whatever caused the claim, they'll cover it.

It's not that complicated, but it's not fast or easy.

There's no need to go looking for something complicated. 

In a contract for deed, often done with seller finance deals, the answer is a little complicated.

Really, so the most complicated, intricate is the "best place" for those who know the LEAST...... 

You can do self directed IRAs and 401ks, but it complicates things a lot and you loose depreciation.   

Plus is complicates a lot of issues, more documents needed for title, etc.Now they can do all those things, but most people are too cheap to do it correctly, and all these people telling you to do it yourself, probably don't know how to run the LLCs correctly to stay out of trouble.It's not all that complicated, but it does take some work and a good attorney will guide you thru all this. 

Lending is a highly regulated, complicated endeavor, and it's important to know all the requirements for licensing, etc.