Some they lived in, remodled, re-furbished & sold for a profit - then bought another one, then repeated the process.

Stop thinking of the potential profits.

hello everyone, well anyway i'm a new investor and after some research i decided to focus on pre-foreclosures.well anyway i was told of a strategy that i could use that didn't involve the use of any of my money or credit and will allow me to actually retail these properties to end-buyers and not just wholesale them for a small profit to other investors, it sort of goes like this.1- locate and market to the people in pre-foreclosure, 2- once they contact me setup an appointment with them, 3- setup a land trust with them ( which they will be the beneficiaries and either me or a disinterested party the trustee)and have them sign a "warranty deed to trustee" doc which i will record at the my local court house, 4- also have them sign over there beneficiary interest to you which you'll store away for protection of problems that might come up in the future 5- start marketing the property as well as working on the short sale with there lender, 6- once i have my end-buyer (and hopefully my short sale is accepted in time) have my title company perform a double closing to pay off the first lender as well as myself, and to give the end-buyer clear title without any seasoning issues coming up (which i was told there has to be two separate HUD's, two separate escrow accts and etc)so my questions are: do i have all the steps down correctly or am i missing something?

Simple enough, all I have to do is get a loan, find a place, fix it up and BOOM I make profit.

Always good to have a domain expert.Second has to do with your focus.You have a profitable business model and a stable of investors you work with.

Ive read elsewhere that this can be a good tool to sell a home, save some tax and pull in a bit of profit.

I just see more profit for such an easy rehab.

We split the profits accordingly that way.The people that always get paid the same are the realtors, they LOVE ME!!!

What I'm trying to get at is, what is the best way to profit from the property without losing $$$ to the taxman?

In other words, make sure there is plenty of profit in it compared to the amount they have to pay and the repairs required.