Quote from @Account Closed: Honestly have no clue, but my guess would be contact a lawyer who specializes in real estate.I am also trying to get a hold of other wholesalers in my area and real estate agents.

And of course we're in agreement on consulting a tax pro.

I think you will definitely want to talk to your lawyer because there may be items linked to this transaction you are not considering. 

The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

The only thing we can think of is he deals with a lot of international trade and money and maybe it’s OFAC we just get a scripted message every time we talk to someone so we got lawyers involved. 

Baselane has the added advantage of synching with your Schedule E you'll use at tax time to file your taxes.

You can take any proceeds tax free and roll into a different investment. 

Again with tax auctions, some kinds of tax auctions are referred to as a "free & clear" sale.

Pre-foreclosure - homeowners are desperate to avoid foreclosure and they quitclaim deed the title to some XYZ organization , person, or to a lawyer that specializes in foreclosure defense.

What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist".