My plan was to buy, fix and sell, but I was wondering if it were possible to get money at closing to cover the mortage until I can get it sold in the spring of 2009.

Are you just offering a directory type service, or do you actually screen tenants in some way?

Does anyone know if I can buy insurance to cover my losses if a buyer fails to close the purchase of a home?

Screening, vacancies (mostly, these won't turn into purchases), advertising, make-ready, utilities while its vacant, insurance, taxes, etc., will still fall to you.

Assuming you use hard money to buy, hold for six months, and have cash to cover closing costs and holding costs (estimate about 12-15% of the loan amount), that should give you a profit, pre-tax, of 10-15% of the ARV. 15% would be if everything is perfect.

In my opinion, the operating agreement needs to outline the investment specifics best as possible and cover as many 'bases' as possible.The agreement should hit these points:• the members' percentage interests in the LLC• the members' rights and responsibilities• the members' voting powers• how profits and losses will be allocated• how the LLC will be managed• rules for holding meetings and taking votes, and• buyout, or buy-sell, provisions, which determine what happens when a member wants to sell his or her interest, dies, or becomes disabled.You never know, keeping it simply may help attract more investors than you think.

and insurance are covered.

***they will wipe those people out to cover the losses, JT** Why are we having all of these problems?

You can delegate a lot in time (after you have enough properties to cover the overhead) but the key is managing your delegation.

Read the threads in the landlording forum on screening.