Because there is a high risk of them returning to a life of crime.However, many of them do not return to crime.

Would it be possible to structure the trust so that I, the beneficiary, inherit the trust's asset on the moment of the settlors' death (my parents) without paying the inheritance tax, but the income generated would be received by the settlors during their lives (and they are the ones to report the income in their tax returns)?

Vacancy is your greatest killer on returns 8.

I've been presented with an opportunity to invest in a 7 acre parcel on a mountain in NC, and need some help evaluating it. 10% annual return on the $175k initial investment, and 50% of the net proceeds of each lot sale (12-14 lots). 

PA will require some type of tax return filed with the state depending on the entity type.RCT-101 is normally required for corporations doing business within the state

That is a much higher return on investment than the cash flow from buying a $200,000 property that requires no work.

Hi Patrick, A few things to think about:You'll need to find a property management company who will manage any deal that you buyYou'll need to meet the net worth and liquidity requirements to qualify for a loan You'll likely need someone with experience to also sign on the loanTypical structure between the LP and GP is a preferred return  and a 50/50 to 70/30 profit splitYou can have up to 35 non-accredited, sophisticated investors with a 506(b) offering, as long as you have a pre-existing relationshipAlso, do you have previous real estate experience?

And you get passive income (preferred return on a monthly basis - mailbox income) and potentially get your entire investment back on a refi from appreciation.Rich help rich become even more wealthy.But you’ll have to be an accredited investor to play.Google IRS for definition.

In your post you lay out some of the common things that lead to low returns when converting a primary residence into a rental.

You dont have to start with 1% and 99% LLC now because 1) you will have to file a partnership return for your LLC.