Of course, the real estate transaction has been completed, so his involvement does not seem appropriate at this time. 

One of my accredited investors would like to buy a couple of shares on behalf of their minor children, but are unsure on the best way to structure the transaction to shield the minors from tax liability down the road.

that is the essence of a reverse exchange but the IRS is getting awfully fond of rev Proc 2000-37 and the safe harbor reverse exchange. 

In most states working with pre-foreclosures are sophisticated transactions that must follow specific laws and guidelines.

Supply under $300k has increased a lot in new homes and transactions around $200k seem to be on fire.  

I would guess it would be safe to budget an additional 1000 per person.   

I do agree with people it is easier to use transactional funding and double close.

This should be two transactions...

@Connor Swanson  Usually, with a subject to deal you can offer a higher amount than with a typical wholesale transaction. 

Order a title report, set up escrow, write out the details of how you want the transaction to go and have an attorney put together the paperwork.Another option is for you to buy the house for the amount owed with a carry back from him of the equity you want him to have.