This is one of the main draws of commercial real estate investing, and some high net worth individuals purposely invest in large deals that accelerate depreciation so that they can shelter all their income.

If I am collecting those fees upfront, how do this benefit the end investor and or what disadvantages does the end buyer (note investing wanting a performing note)?

@Jake DeBoer your main issue here is just the LLC part. 

It looks like the main thing is that your parents would have to hold the property for a minimum of two years in order to convince the IRS you weren't engaging in cost swapping. 

The main idea is to chose a strategy thar resonates best with you and work hard on it until you excel in it!

@Cornelius Garland I appreciate the advice and being able to benefit from your experience. 

I’m only taking half of the profits, but I’m also paying for half the deal, working half the time, and have the benefit of added motivation to meet my commitments to both my partner and the business.  

Main takeaways from delayed financing are - the value of the property will be capped at the purchase price even if the home appraised higher. - you will have to prove source of funds for the purchase - if you opened any new unsecured debt when purchasing the home then that debt must be paid off when cashing out. 

Mainly cosmetics and minor repairs to the properties.

Hey Wayne,So I should mainly look online and why wouldn't the agent and owner be interested in getting rid of a property?