For example:Buy a property for $30,000Repairs of $20,000Mortgage of $50,000 at 7% interestARV is now $75,000Sell to new owner on a subject to: for $75,000 with say 9% interest.If the new buyer defaults, just resell?

On a double closing the buyer and seller don't know what you're selling it for or normally that you are even reselling it.2) On an assignment, you just pick up a check.

I helped two clients last year buy land, put up a spec home, and re-sell it.

A couple of commissions and a couple of sets of closing costs and you'd be pretty close to the line.You'd have to be getting them pretty cheap to resell them to some one who is also going to make a bundle on them.

The values of each of these properties are between $1.45 Million to $1.8 Million.Due to the Michigan market, it has been difficult purchasing a property for 50 cents on the dollar and reselling it less than 30 days for 90 cents on the dollar or more.

He knew about the 60 day ban on reselling and was okay with that, it takes at least that long to rehab.

Then, when they find a buyer, they close on the property with cash, and then quickly resell it to another buyer.

I had to tell him I would close cash then resell it on my own time.

If it was your intent to sell to one non-disqualified party with teh intent to have thme re-sell to the disqualified party 3 years later, then yes, it could be ruled as a prohibited transaction.

Next you either wholesale it which involves marketing, finding buyers, closing...all while trying to make a modest profit.Or you could rehab and resell it which involves properly setting your budget, knowing the market to determine exact repairs/finishes to make, lining up contractors, managing your budget, managing your contractors, managing your schedule to minimize your holding costs, finding an end buyer, with 100+ other tasks mixed in.Your comment about planning is dead on.