Waiting until the property turns into a REO may cost a little more, but you will get a clean title, a warranty deed and have the option of buying title insurance.One auction option that can be very profitable is tax sales.

Generally, you need to offer about 60-70% of the After-Repaired-Value (ARV) for a house in order to make a profit.

Learn to do your own title searches (medium learning curve) and create solutions to the owners pain in such a way that you can profit from the transaction.

Even if the investor can exhibit a positive profit with the conversion of the loan, what obstacles do you envision?

This is to give me a 20% profit on the money I invest.

There are lots of areas to invest in Canada where you can turn a tidy profit.

More than likely you'll only see about half of the net that they stated....if you had a mortgage on it you'd probably end up in the red every month.My guess is they took the standard rent - taxes -insurance = profit sucker formula.

We would be splitting profits 50/50.

The Operating Agreement for the LLC will spell out other agreements with members (you and your wife), and it sounds like 50/50 for capital, profits, and losses.

The numbers show a modest profit but this should be both a good learning experience for my wife and I moving forward.