Hi everyone, I am looking to deploy a substantial amount of capital into REOs (for flipping) and am curious which segments everyone is getting their best ROI from (lower end homes (20K-50K), mid-priced (100K-250K)higher end properties ($500K or more) etc.

In this agreement, the capital partner holds title and the real estate investor manages the renovations and markets the property.This is a very simplified version and is intended to be a template whereby you fine tune the details with an attorney to correspond with your goals.Once you have a completed agreement by your attorney, you can keep using it over and over again.

Yes, I am doing both, but I'm placing far less capital towards debt, which should get paid off just fine if and when inflation rears its ugly head, and allocating the majority towards financing at these super-low rates.

It is also my understanding that assets contributed to the corporation are contributed at cost basis, but if withdrawn, they are withdrawn at FMV which may create a taxable capital gain for the taxpayer.My understanding may be imperfect, but these issues certainly bear further examination.

This might be tying up too much capital for a minimal return. 4.

A follow up question is whether or not I would be subject to capital gain taxes since the loan will be considered an "investment property"?

We are giving preference on capital gain only.

In my opinion a cash purchase in low to moderate income areas could net a 12% cash on cash return with potential for capital appreciation.

Without a significant income, I'd be a little nervous having to cover debt service (even if it was at a low interest rate) with capital I'm supposed to have as reserve or for investment.

If the buyer capitalizes the closing costs, how exactly is he extending the loan term?