The question is whether or not all parties will be actively involved in the deal (JV/partnership) or if there will be one lead/sponsor/general partner and the rest will be passive investors with expectations of return on their money (syndication).

However, that involves having local internet access, I believe, meaning I would have to have a deal with one of the tenants on sharing their internet.

In my state the only way it can be disbursed is with a signed agreement agreeing to the release and distribution by all parties involved in the transaction, or by court order.  

So it is like for like, but with family involved.

Absolutely.Now, thankfully, I am not in that position anymore, and my portfolio has grown to sustain itself without my personal finances being involved. 

I know that there is risk because of the lack of paper trail, but could this also raise a red flag for the seller not wanting the banks to get involved?

@Mohamed NagoorYou should look at this in a separate few steps:1) You fund your LLC (shareholder contribution) with $100k2) Your LLC spends $70k on inventory (the house), and puts in an additional $30k to improve the inventory.

Also be aware that in both exit plans you will need to be very ethical in your disclosures to all parties and there is some paperwork involved. 

There are upfront costs involved in your direct mail marketing and it takes a lot of time to learn how to do wholesaling the RIGHT way.

I have primarily been involved in mostly cash transactions, as well as a good amount of hard money closings.