At $220K it seems like too thin of a deal, especially for a complex deal and you getting a cut.

No keys ever get transferred until all funds have cleared or they provide a bank certified check.

So, to put this in words and be clear, if I have $100 in cash flow using the 50% rule, theoretically I can do whatever I want with that cash as long as whatever part of the 50% of expenses I don't use is saved for times of higher expenses?

He is currently asking 140,000 for all, but has made it clear he will take less.

Lots of players taking cuts here, so may or may not be a good deal.

A good contract should make that clear.

I've done that when I cut foundations to put in egress windows.

I'm sure there are some shady guys out there, how can I prevent a rehabber from cutting me out of a commission fee?

My plan is to offer these lots as a purchase option (1 year from now) since i dont not have clear title yet.

The IRS is pretty clear that you cannot rent from yourself or your spouse and I think a judge would look at the asset as clearly a liability protection scheme (aka not running as a legit business), pierce the corporate veil, and not provide you any protection.It's fun to start LLCs, but it's also expensive and time consuming to maintain properly (separate accounts, K-1s, 1099s, accountants...) just to provide liability insurance.