I recognized one on the 1st page www.PrepAgent.com. 

@Collin Smith In the lending world there are basically 2 types of loans for these properties - "Conforming" loans or "Portfolio" Loans.A "Conforming" loan is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names).

Let me know if you have any specific tax questions.Just so you are awarePA does not follow the federal guidelines for 1031 exchanges(does't apply in your case if you are flipping but i thought i'd let you know if you were thinking of alternative exit opportunities).Also PA does not recognize NOL's at the state level for individuals.

Title companies do not recognize quit claims in Texas except for internal transfers such as a divorce situationDeeding the property back to the owner has it risks. 

A "Conforming" loan is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names).

Without the depreciation recapture rules under, the $10,000 (sale price of 10, 000 - your basis of 0 ) gain you recognized will be taxable as capital gain under at a maximum rate of 20%.Thus, the sale of the machine in Year 2 would increase your federal income taxes by only $2,000 ($10,000 × 20%) (and would not be subject to self-employment taxes).

I recognize there is tremendous risk in pursuing a development and lots of possible pitfalls, but we hit the jackpot with the location and to us represents once in a lifetime opportunity to remain owners in a prime parcel of urban city property that every person I have consulted with in real estate has agreed should be held on forever given its appreciation potential. 

Hey @Steve Watson - Without getting into a long winded explanation which should really come from an accountant, I can tell you that if you use a cash basis for your accounting (rather than accrual) you recognize the income when it is received rather than when the sale is made. 

Understand the numbers and how to analyze a deal so you can easily recognize a deal when the opportunity arises.Two great books that I recommend on the topic of 'general' investing include Richest Man in Babylon and Set for Life.Happy investing!!

The REO stigma is a measurable value that banks recognize as a discount seen in the market once a lender has taken the property back.