That said, "chickens coming home to roost" from the various seller-financing deals done WRONG is a very strong potentiality, as issues of such will most likely grow in occurrence and thus possibly press internal audit's that uncover such, and resulting enforcement actions start enacting in a volume.

The other thing is switching schedules on a property is a good way to get flagged for an audit.

I've  been Investing in RE for over 35yrs and have legally not payed a dime in taxes and have been audited 7Xs by the IRS...and am undefeated...willing to Share my knowledge....

One that covers you at no cost if you are EVER audited.

The cost of all the vendors to process a loan: credit, audit, LOS, tax, Underwriting, processing, verifying every piece of paper is a range of $9000- $11000 per loan. 

If I actually go for this, I'll be planning on an audit from day one and I'll have my ducks in a row :)

On the other hand there are plenty of others that provide lots of transparency including all the way up to audited financials. 

some of you may want to read this article. http://www.phillytrib.com/news/local_news/audit-re...kudos,Mary

The IRS in its Passive Activity Loss Audit Technique Guide published a sample Activity Log.  

@Sachin ReliaI know they just launched a new reit 2, in their last reit they have yet to submit their audited financials from 2022 (due by April 30th) or their semi annual report for 2023 (due by September 30th)They also have switched auditing firms in this new venture….I would ask them the status of the above.