Call the state finance department and ask them what is required to be a commercial lender/broker, be sure to tell them that you will be brokering, not using just your money.

You should be able to contact the local zoning department for some clarity on the ordinances.

The ceiling would need to be taken down in basement, flooring would need to be replaced throughout the home and there is some masonry work (nothing major) that would also need to be done.

Couple that with a probate sale and a year or two elapsed time and you have a recipe for major back end discounts.

He can also tell you if it is a simple fix or major problem.

but we'll throw in a suggestion: call the zoning department and ask about the property.

These aren't issues with the transaction itself, but with the operation of the plan or entity after the fact.The major unidentified risk, as far as I can tell, is that the Department of Labor technically has jurisdiction over Prohibited Transactions--not the IRS.

This way there's no issues of ownership on the properties, or concerns if I'm no longer the majority holder, just loans.

Not knowing if you can get a clean title down the road is a major issues.

We spent the first few years here learning the various markets, getting to know the building departments, which were best to work with etc., getting up to speed on property values, and looking for our niche.