They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).

The auctions are just as dry as the MLS and wholesaler deals. 

Dry and hot.

All of that is pretty cut and dry. 

Selling your share at fair market value could avoid gift tax but may trigger capital gains tax for you based on the sale price and your cost basis.In California, the transfer may also trigger a property tax reassessment under Proposition 13 unless a specific exemption applies.

Quote from @Isaac Terry: I was looking at homes in Akron & Clevand, they are affordable but since I'm out of state I'm not sure about pulling the trigger on investing. 

MLS seems pretty dry, especially where im operating.Thanks in advance.

You can put a mortgage into a "trust: without triggering a due on sale but again contacting your bank/lender is the best route to avoid any issues.Some banks/lenders or servicing companies change guidelines and even a trust may require other paperwork but the attorney usually facilitates that to be safe.  

Adding the ex to the title could trigger gift tax implications, so keeping it simple is best.

Pays to have extra dry powder on the sideline and infinite returns.To Your Success!