Upon a sale, the amounts received from this deal would eat into the exclusion.9) The appreciation rights of the investor and the note could be sold off to other investors if either party got impatient.10) A maximum LTV on mortgages on the property in the range of 60% could be established to reduce the likelihood that the seller gets behind and does a short sale that wipes out the investor.11) If this arrangement might cause a problem for the homeowner when refinancing or taking out a HELOC, the investor could agree that the investor's interest is subordinated.Benefits: The homeowner's net worth is less concentrated in Silicon Valley single family home performance, and the investor gets a leveraged return on an asset that has potential to appreciate at faster than the rate of inflation.

When the market crashed in 2008 I jumped to the real estate side and worked as an in-house RE broker for an asset management company until 2012.

Depending on the asset class, it may shield anywhere from 20% to 100% of the distribution from taxes.

If the seller carries the mortgage, do I still control everything else such as being able to borrow against the asset and rehab to add value.

So if you move a leveraged asset into an llc it can trigger the due on sale clause.

I think we could all do better to educate tenants to the fact that in today's digital world, they can't get away with this crap anymore.

that's the way to own low value assets NO DEBT  SMART good job !!!

Acquisition Fee - 1% Debt Arranger Fee - 1%Loan Guarantee Fee - $25k per guarantor Waterfall - 10% pref. and 80/20 above 10%Asset Management Fee - 2% of Gross RevProperty Management Fee - 4% of Gross RevConstruction Supervision Fee - 5% of construction spendExpense Reimbursement - Expenses billed to the property

There is no asset in the world that one should always buy.

In fact, you should be using an attorney to set this up because it is much more complicated that LegalZoom would have to believe to get the proper asset protection.