Yes, this is "tough love", but you won't survive in this business if you let it affect you:)

I'm looking for a new source of investors who are in the business of funding these deals.  

We put the property completely back together, making everything brand new overall.

Your taxes are none of the ex wife's business and this would seem to address your concerns.I would also put her on notice that future requests for financial discovery will be two-way and if a discrepancy is seen in the other direction you will seek support from her.

I figure this would be really helpful for anyone in our business.

I would tend to agree with the other CPAs typically.The 500-hour test is one of seven material participation tests used by the IRS to determine if a taxpayer is actively involved in a trade, business, or rental activity. 

- If the 5% do say they'll sell a must in this business they have to also agree to MOVE OUT PRIOR TO YOUR CLOSING DATE. 

I run a full time flipping business, right now i am able to do 2 homes at a time.

Is your goal to use being an agent for your own personal investments or actively try and grow your agent business to eventually leave your W2?

Also If the names are correct i searched dca database and found neither license listed under the name or business.