He would be doing the job in his personal time and would want to be paid under the table essentially.

That means their whole security on the loan could essentially be worthless - who knows what the HOA fees/liens could be if they have to take over the property in foreclosure?

Hi AllJust wondering where folk are up to regarding tax and the likely tax to be paid on your USA investments.I am not talking 1 or 2 properties but 20+ SFH's with a $300,000 pa cash flow.Some givings that are essential to the discussion.

I feel like I could live there but I don't feel comfortable being obligated to.Is there a fair offer I could make to the seller to essentially JV with them where they provide the house and I provide the construction money and design program to improve the house to market levels?

I gurantee you that in this market, 98% of people that jump into the game with bad credit, essentially no money to work with, and not even enough experience to know that in order to "cash out and make money off rehabing" you have to SELL it, are going to get absolutely BURNED.

There are are a lot of issues and often an exchange should be planned well in advance.A good exchange facilitator is almost essential.

If you plan to hold it in an LLC (or another business entity), you can likely just use the operating agreement (or by-laws) of the LLC/Corp to define the relationship and the responsibilities.If you plan to hold in your own names, you probably want to have a partnership agreement that will essentially lay out everything that would otherwise be in the operating agreement.While you can probably write the document yourself, you'll want an attorney to review it to ensure that it's complete and unambiguous with respect to roles, responsibilities and financial issues.

Premiums Paid:* Sale Markup (The investment group puts in under contract and essentially wholesale's to you) Knowing that you don't know much about the area, they may try and squeeze in a few extra $$$ they wouldn't normally be able to.* They have their "crew" do everything.

Most first time homebuyers (of which most HUD buyers likely are) are going to get FHA loans for their purchase.In order for a house to qualify for an FHA loan, it needs to pass inspection and essentially be move-in ready.Even a missing stove or fridge will disqualify a house for FHA funding, so most owner occupants will have to pass on houses wi just these small types of defects.

A rent-to-own or lease/option, whatever you call it, is essentially a glorified rental.