My issue with the property is that I have heard stories about wholesalers not covering their end and taking the owners word that he doesnt owe anything in taxes and violations and once its under contract it turns out that they do.

Some might ask you to bump your offer up to cover agent commission (which means you are really paying for it in a round about way).

. – An option contract for the purchase of property that includes or is combined with, or is executed in conjunction with, a covered lease agreement.?

Each member would contribute $15K($45K total) to the LLC to cover the 20-25% down payment that would be needed for the complete project plus some additional cushion for future debt service.

I dont have a 401k or pension or anything due to this business, so I'm going to build up a rental portfolio to cover long term retirement costs.

ARV: $480,000Max % of ARV 70%Repairs: $64,064Closing Costs: 2% (covered by seller)Holding Costs: $1500no other expensesAssignment fee: $15,000Max Offer: $250,027Profit: $229,973

Commercial loan for 70% covers 7M I can put in .5M now I need 2.5M.

.)- The cash out refinance will cover his costs and I will get the remainder of the money (based on the appraisal).- Rental revenue/expenses will be split 50/50 going forward.

It may not be a bad idea to wholesale multi-family homes in the 2-10 unit range as this niche is not yet widely covered by others.

If the lease doesn't cover tenant improvements, what protection can be developed for the buyer?