Later, it's sold and I receive 20% of the net profit.This is purely a money deal on my end (no involvement in rehab or rental).Question - If the property sells quickly (say, within 3 months), and since my profit is paid through a security agreement (I never have title to the property), how would this be treated for tax purposes?

If you want your contract to be enforceable then provide equitable consideration, not this $100 junk.0 interest will really tic off a seller when they have an imputed tax on interest and depending on how you led them to accept such a deal can take you to court.

Also, if this is a refi, there shouldn't be a transfer tax/survey on the loan.

- Owe taxes?

I'm young and hardly know anything about taxes in real estate.

Also if I were to prepay the entire term of the lease at once, could I apply that to the single years taxes, or does it need to be taken over the course of the whole lease (3 years)? 

I believe the state where the LLC/LLP is organized will want a share of income tax on those properties by default and you will have to demonstrate (through more forms) why they should not if the properties are in another state.  

hi Noe,Thanks for replying as of right now they have 16 units rented and they are gonna finish the renovation in a month or so what they tell me is they will have 85% of the units rented with in that time frame they dont have a management company in place and i would have to get one  taxes are 15k and insurance is 12k  that is all i have on the numbers at the moment.

Call up realtors for investors, check Craigslist, tax sales, meetups and talk to people and look for investors.5.

@Jonathan JohnsonAsk for a copy of the trailing 12 numbers for the building.  2015 P&L and Tax Return if they will give.Find out about property taxes and insurance.