I read that a number of developers have started building or demolition of structures without the cities permission which really pissed them off.

As long as you do your due diligence there shouldn’t be any major risks - especially if your first deal is a structurally sound home that just needs minor repairs.Hope this helps to ease the stress, it is challenging but in a good way.

I was wondering about what experiences you guys have with setting up partnerships and investing with many people, say to start out with 1 to 5 other people… I know REITS have a lot of potential, though you need 100 people to even start one… In partnerships could you possibly structure it so there are multiple people, people that give small and large amounts of money, and give them a percentage of a property, or group of properties?

It is not like land is in some high demand where it sells quickly and dealing with land is a very specialized field since there are thousands of issues that need to be ironed out before a lot sells e.g. nobody wants to buy a lot where you can't build what you want on the lot because the last blue butterfly in the world lives in a bush on the lot, or the lot is on an earthquake fault, or there is the county will not let you build a structure on the lot more than 10 feet tall, or you cannot cut down a 100-year old tree right where you want your building to go and the list goes on and on.

So it depends if you can arrange the payment structure with the servicer and want to stay in this deal. 

Two members will be the managing members and also providing capital, and one member will strictly be providing capital.We would like to put a waterfall structure in place for any money distributions, including preferential return on cash yield, and an IRR hurdle for liquidity events, etc. and we would like all this to be clearly spelled out in the operating agreement. 

I'm not paying an additional $500 on a house that we may not even obtain.Foundation and structural beams look good.

Typically, LLC's shine, when holding properties in them, in case someone sues, or to help structure pay, dividing profits and losses, etc.

That means it could have any number of structural or safety hazards.

You can't structure a foreclosure deal without knowing the fundamentals of wholesaling.