If not, they become carryforward passive losses.

He needs to know he can get out of the deal for no loss no matter what happens.Your only choices are to wholesale it or JV with a money partner.

The writing on wall is to not only passively invest via buy-hold, but to get out there and start a business that will keep food on the table each day.

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.).

I spoke with the village inspector this morning and he tells me he can probably make the apartment "Unfit for Human occupancy" since they have food actively rotting in the refrigerator.

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.