The serious kind of asset protection tends to become more beneficial when you start thinking about ways to deal with gift/inheritance taxes at the federal level.

I do not know completely yet if this is a gift or a curse... but I most certainly do not have that.

I attended another Scott Yancey seminar for the free gift and food.

Return on principal is not taxedSo when you give him $50k no one pays taxes as it’s a loan not a gift.

Samuel - thanks ....I  believe non occupant co borrowers  will be allowed .....and I believe  that gift funds from relatives  will also be allowed ...

I'd recommend a gift from a family member or friend to assist in this.

With this gift, also comes the great opportunity of being the first to rehab in certain areas.

.* If approved for a HELOC, and it is never used, the only cost was the property appraisal.The downsides include:* Requires the basic financial discipline to see the HELOC as a credit card and not a gift card.* In a housing crash the lender may freeze the credit line or demand payment.* The above can be alleviated by paying back the HELOC with a traditional mortgage once the home is repaired.

Often times, these new owners will be desperate to sell their old houses ASAP.Contact mortgage companies; they may know of people wanting to sell their old house/last houseHire bird dogs (sometimes even through craigslist “help wanted” ads)Send mailers to Bankruptcy court listingsSend advertisements, business cards to Accountants and CPA Firms: They have clients with financial problems where an investor can be of help.Send ads, mailers, business cards to real estate attorneysAdvertise “We Buy Houses” using Apparel with Logos: Hats, T-Shirts, Golf Shirts,Send to anyone getting their car repossessed: If the car is going the house isn't far behind.Send ads, business cards to carpet cleaners: Many of their customers are preparing a house for sale.Send mailers to charitable groups/churches: They frequently receive gifts of real estate, but they'd rather have the cash.Send ads, business cards to City & County Inspectors: Code violations and red tags.

I agree with concerns with collateralization, but to me the bigger issue is limits on distribution of assets section: no "distributions of Borrower's assets--or make any advance, directly or indirectly by way of loan, gift, bonus or otherwise to owner, partner or employees".