.- If you'll be an equity partner, make sure you have a good methodology for auditing the investors.

Typically an agent cannot utilize and S-corporation; however, a Brokerage can.As far as the Fed goes, there have been many audits arguing this topic.

(There is the good side as I don't know of a note forum that has no agenda of the site owner, if anyone does please chime in).If you can't actually do a review appraisal, know pre and post underwriting aspects, understand foreclosure laws, are familiar with insurance requirements, know how to audit the note and understand what may constitute fraud or non-compliance issues, you have no business buying notes yourself as you're buying a pig in a poke.I really suggest new investors learn how to vet mortgage brokers, understand the representations and guarantees, know how to assign documents and servicing first.

The insurance company will audit and look back at the workforce.

Maybe they do a few random audits.

Instead of auditing `1031's the IRS could give us more guidance don't ya'll think?

Often in that area you can have an energy audit done for $100 or less where someone comes in with a thermal camera and shows all that places the heat (or ac) are escaping.

Notes go through a random audit for compliance, besides the red flags that pop up with loan servicing you will never know when or how they detect a transfer.

Spend about $5 on an a Iphone-app (like Turboscan) that can scan to PDF, pay apple for the Cloud (or the Turboscan app will not be real reliable when it comes time to storing or emailing your images ) I been audited 2 of the last 4 years and the only thing they ever got me on was missing or losing receipts

@Charles H.If your activities rise to the level of a 'trade or business', a general non-specific search in a new geographic area would be start up expenses under IRC Sec 195.Once you've identified a specific property, expenses are capitalized and added to the property's basis if acquired.Expensing the costs, even through an active LLC/ "investment LLC" is not correct treatment and will get adjusted should the IRS ever audit you.Encourage you to work with your tax CPA/EA as it's very possible not all of the travel expenses are 100% business related.