I have heard that the two most profitable states to establish an LLC would be in Delawear or Nevada, What would the reasons be for that?

If I buy a mobile home for $1000 and sell it to someone for $3000 with financing, would I be taxed at my normal income tax rate for the profit of $2,000 and the interest I collect?

We'll buy in an area if:We know the area and the profit potential is there.

I'm not sure what ARV stands for....He will pay us the cost of fixing up the property which was quoted to him by my Contractor at 35k, making a 15k profit for me and the other 20k will go to construction costs and subs. 44k to me as the Private Investor, roughly 15k Broker fees and the like.I believe, although I may have misconstrued my initial understanding, that he will buy back at 85 percent of Market Value when the year is up.The 89k is the money he is left after paying us our fees, where I believe I got confused, as my Mentor told me we would be "cutting" him a check for that amount.This leaves me wondering why with so much equity he could not access it and why he went into default.

Bottom line is there's a good 60K+ profit in this deal.

As an LLC, are we required to distribute all net profits to members or can we leave a small portion in the kitty for future investments?

Jon was correct in this aspect.After the auction, once the property is wholly owned by the lender (or auction winner); the new owner (lender in this case) can sell that property (REO) for whatever the market will bear, and keep all of the profit.

Anytime your profit is tax free you're making money.

I've got the $10,000 cash and you'll make a 10% profit!

My sweat equity and wise spending on materials/labor has led RE broker to expect it to sell for 30% profit after investment/broker/taxes, etc.