What I'm now looking for is a some of the common pitfalls associated with this sort of deal.

In the State of Texas, a Land Trust is used by investors mainly to effectively mask the identity of the owner.The common reason for needing to mask the owners identity is when someone takes over the mortgage but the mortgage stays in the name of the seller.

This scenario should allow us to move into the rehab house after the serious renovations are complete, that being the kitchen mainly.

Seems like 50% is pretty common for residential properties.

Most experienced investors will tell you how they would work with you in that scenario and you can then determine if it's acceptable to you.

Even if you couldn't come to terms you may be able to help them with information, scenarios, timelines and options.

We have acess to the cash to take down and complet 10 at a time 450KTHe local Bank has already loaned at 20 year AM 8.25 (prime+.5) for 6-% LTV cash out but only after tenant has made 2 rental PaymentsIt is a Revitalization type scenario..Friend has already completed 25 of these over the last year and only has 6 left in inventory.... but sales all but stoped in August and Septemberr.The banks are still looking at this as a Community Redevelopment Act money play so once fixed we can unlock our cash and then some....I will search for the 50% rule but find it HIGH for a direct Managed property that has been COMPLETELY rehabed... new wiring, new plumbing pipes new hotwater heater new heater....

Each SMLLC would take title to an undivided XX% interest in the real estate as a tenant in common.

If you buy condos and other similar properties where there is centralize maintenance for common areas that can be a benefit.Apartment buildings with onsite property management is another way to go.You also might need to learn a new legal process.

This is a common arrangement for rehab situations.