Jose, I'm wholesaling right now but my goal is to fix and flip,obtain some rental income property.Brent, I will inquire about whether that colleague would or could agree to that,then let you all know.

Either way, the costs of obtaining either one would be tax deductible against the new rental you're buying.

Unable to obtain bank financing due to the property type (older single wide mobile home on acreage), the seller agreed to take back a note for the buyer.Sale Price $120,000Down Payment $ 7,000Original Balance $ 113,000Terms: 9.5% interest, $987.28 per month, 300 month termThe sellers, being of retirement age, wanted something more than monthly payments.

Hello BP,Looking at some properties in the Kalamazoo, MI area and was hoping to connect with someone local to that market to discuss some of the details of the area. 

If you want, send me a PM to discuss further.

Happy to discuss, message me for more info

This discussion was definitely very helpful for me so thanks to all who put in their advice!

There's a lot of discussion around partnerships, private lending, and hard money, but I don't see much discussion on the actual mechanics - what these arrangements look like in practice.My hope is this post can serve as a reference for those starting out, so we may get a better understanding of how these strategies are actually implemented as well as an ability to more accurately predict the profits and returns you and your lenders and partners can expect.If those with more experience would like to revise these numbers and statements, it would be most appreciated.These scenarios assume you, the flipper, are bringing none of your own capital to the deal.Typically, this would mean 1 of 2 scenarios...Private Lending - Someone you know brings 100% of project costs (purchase, rehab, acquisition costs, holding costs) to complete the deal and in return, they get a certain percentage return which comes out of your profit.Hard Money + Partnership - You get a hard money lender to cover 80-90% of purchase+rehab and a partner to cover the remaining 10-20% as well as acquisition costs (including hard money origination and points) and holding costs (including hard money interest payments).An aside about the structuring...Private Lending - A promissory note is created, and your private lender lends to you or your business. 

This may include such things as paying the property taxes from the IRA and obtaining annual fair market values for reporting purposes.https://www.irs.gov/retirement-plans/retirement-pl...

@Sarah Bunch A good person to discuss this with would be @Dillon Pesce.