I would lend it out via hard money, which I'm currently doing, at 10%. 

Depending on how much money you're making (which, if you're at a loss, may not be a ton), those trusts can sometimes cause more tax than going the standard LLC route and just paying the $800 in the first place.I'm not sure from your post if you're talking about income taxes that are owed, or the $800 LLC fee, which is more akin to a franchise fee in the terminology that you're using. 

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 connect to discuss further. 

I thought of wholesaling as a way to get my feet wet and to build capital without having to use my own money.

If during the tenancy you decide to switch bank accounts to hold the deposit, you must give the tenant notice of where the money is being held within 30 days of moving to the different account.

But I would say “Consider your timing.”Real estate is expensive right now, and money  is expensive right now (APR wise).The fed is expected to start cutting rates later this year.  

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That's where I save a lot of money on the build.

Those are all fixer-uppers and people are using hard money to minimize cash out-of-pocket.FWIW, cap rate is an irrelevant metric for single family, which uses comps to determine value. 

You have the option to put less money down and thereby leverage the banks money if you choose. 3.