Finally I am finding that although legally it's ok to do FHA loans on pre-90 day properties some banks do not want to do it if the house is being sold for more than 20% of what I paid for it.

(assume that I'd be able to get qualified for the loan and that it would be "reasonable" to be able to pay back the 40K in the time specified)after re-reading, i assume the investor would need to be a lienholder from the beginner under any circumstance...but is that even possible, or would I have to buy the house "with" the investor, which i'd rather not do...also, do not dwell upon the legal details of the arrangement, i have people that I could do this with on a verbal contract not to mention a seperate written contract that protected their investment+interest in the event I sold the property for a gain...I'm much more concerned about the actual numbers/percentages and how realistic this proposition is from an investment standpoint, not a legal one..

Regarding this insentive from IRS, I have a deal I am working on where I will be buying a 2 family and renting it with one tenant doing a contract for deed agreement to buy the property.I am asking for 10k up front from tenant so I feel comfortable in that they will not walk or change their mind.tenant says they can get the 10 from their traditional IRA, they do not have funds anywhere else.My question is if we did a CFD they legally wouldn't own the property but would be under a contract to purchase it. so if you haven't guessed my question how does the IRS view this?

The bank coud have tacked on late fees, legal fees, filing fees and other fees to that figure.

I have been doin my research and know the basics of everything, but just needed to tighten up on a few things like getting my contracts i got offline looked over by a RE attorney here in my state, to make sure is legal and learning how to evaluate properties to make it benefit me and the end buyer.

http://www.irs.gov/businesses/small/article/0,,id=106553,00.html Be aware that the heading there says abusive tax schemes; however, it then goes to explain how they are legal or not.As long as it is a Revocable Land Trust it will be considered pass through just as your single member LLC.

Here are two sites that offer legal agreements for Michigan. http://www.rocketlawyer.com/http://www.legalzoom.com/Hope they help.

Unlike "wholesaling" where the unlicensed broker is party to the transaction in some form, bird dogging is on very shaky legal ground.

I'm in 100% agreement with J Scott.We use yellow legal paper and a red ink pen.

Although this is not technically legal, the police know the whole city does this and they turn a blind eye to it.I never cared that my tenant did this, since she has been doing it for years and always pays the rent on time.She recently alerted me of a problem.