I am exploring the feasibility of me doing this same strategy in Illinois... this post is super are encouraging!

I agree with Adrian, again....as mentioned states have set provisions for contracts pending in the event of the loss of an agent or broker's license.

The benefit is that your entity may not be subject to the Passive Activity Limits for deductible loss established by IRS. 3 Financial: If you are properly running your LLC (minutes, filling, separate bank account, filing taxes, EIN, getting your DUNS number, Getting Business Credit Cards, etc.).

Only hold onto it long enough to break even and then sell.Even holding onto a property until the market recovers is a gamble in profits vs. loss.

We have almost $30k of built up passive losses from depreciation, repairs and improvements.

What do you do to subsidize losses or lack of income?

I'm good with that since they are giving you funds that would offset your losses if they back out last minute or don't have all the funds at last minute.

I have been told that you can't make a profit by insuring a property but only make up your loss so I'm guessing that you would insure it for what you have in it.

They'll also claim loss of valuable contents like the Picasso and silver that you took and pictures with them posed next to Elvis that you threw away.

That property was such a loss.