And, if not on title you may be in a position to file liens.If you are advancing funds, you might consider a future advance note and deed of trust and file it to perfect your interests as money is advanced in the future up to a stated amount.Your insurance premiums for a life policy on a key man policy or held by an entity to fund a buy sell is an expense of business and is deductible, so your real cost is after taxes.The type of policy to use I'd suggest a one year renewable term policy if you continue to do business you might look at a longer term, 5 or 10 yr policy.

Those entities have up to 120 days (have your Title Co check) to redeem the property to satisfy their liens.

Are you putting your properties in an entity? 

Also, if I really was coming up with 99% of the funding, why the hell would I ever go through the aggravation to bring someone else in for just 1% capital, and create another entity I have to deal with, new partner agreements, vet them, give up some equity, etc.

Selling to another entity I control?

The Board of Realtors is the club, the private entity Realtors can belong to tohave access to the MLS, they must join to use the title Realtor, not all agents or brokers are Realtors, there is no requirement to join and many in commercial are not Realtors.

But I don't know the specifics of how it would need to be set up.I'm wondering if anyone is aware of such an entity that procures this type of insurance for an individual investor.

If there is a tranfer tax triggered when interest in the property changes from person to person, entity to entity, or any combination thereto, that would make wholesaling lease options and all the other creative wholesaling techniques transfer-taxable.

If you didn't make much in 2012, your penalty for underpayment in 2013 would be less/none.Regardless, spend a couple thousand dollars on a good attorney and tax professional to help you set up a business entity and payroll processing to handle the taxes.

What Wayne said...The one way around it may be to purchase the property in a business entity or trust and sell/assign your interest.Regardless, you'll likely need to involve a real estate agent familiar with short sales to handle the listing and work with the seller on negotiating with the bank.