The IRS was certainly criticized by the Inspector General last September for failing to provide adequate supervision (audit) and instruction (guidance) over 1031 exchanges, especially those involving vacation properties and second homes, which were just addressed in Revenue Procedure 2008-16.

Once I started this procedure I only had 3 evictions over the next 10 years.The biggest problem is landlords who believe the BS, and/or don't follow the legal process EXACTLY.

I would suggest that you read as much as possible, and then develope your policies and procedures, then stick with them.

Gary,If the location is good for a Multifamily project, you basically have 2 options.You could design your project in such a way that it qualifies for your State's LIHTC (Tax credit) program.It boils down to developing and building what is basically a subsidized lower income project.As with all Government programs there are some very narrow restrictions there, but also some serious financial advantages.What I personally don't like about it is that it is a cumbersome procedure, and the outcome is never certain.Alternatively you could consider setting it up so it qualifies for a special Loan program that takes into consideration the value of the land once it is entitled.In normal English that means that you would get long term, fixed rate, non-recourse financing.So none of those F-words would apply; like FICO, Freddy, Fannie, etc.And if done properly, you would most likely actually get a check at closing for some of the value of the land.I will be more than glad to discuss further with you on the latter scenario.Hope this helps.Louis Bergman

So in order to be able to wholesale an REO, you need to get it financed, however that may be, privately or whatever.Then you can turn around and sell it, thus wholesaling the house.This is what I figured was the procedure.

Oh yeah... you have to know what you are wanting to accomplish and have measuring/tracking procedures in place.Then go for it!

you may want to check with your state laws regarding its real estate standards and procedures with respect to the violation of your fiduciary duties to both your seller and your buyer...that is if your state has broker relationships.

Revenue Procedure 2008-16 only addresses vacation properties, second homes and essentially primary residences that have been converted to investment property, but we wondered if this might be the IRS's way of starting to go down the two year holding period requirement.

You need to establish a good working relationship, maintain good communication, and discuss strategies and procedures...BEFORE you hand over the keys.

Sounds like the standard business procedure for some other groups.