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. 

Now that we are coming up on 2 years 4 of the 5 people involved would like to sell.

It's happened to me a couple times - now I know to look out for it some areas or just wholetail so I don't get involved in any rehab at all and mitigate the risk.

I just recently flipped two raw land parcels in 2 different states and realized a really great return on both after some initial land improvement investments.

It involves an installment sale without a 1031.