The only ones they will really prosecute is if a contractor takes money and does ZERO work and disappears.

Save up money.

Is it better than your alternative uses for your money?

Hard money is a great financing program to get you going.

With less experienced or just poor planning operators, it isn't uncommon that they spend years distributing all the cash out to the owners, and then the time comes for a multi million dollar refresh to maintain the hotel brand, and no one wants to cough up the money back into the entity.

Best of luck with your flip, go make some money!

Purchased for $139,999 using a mix of cash and hard money, we revamped it with modern updates, including a new kitchen, flooring, and fresh paint.The property rented for three years, generating steady cash flow of $450/month.

There will likely be a partnership return required where you flipped a house with a partner and lost $120,000.If you sold the other property within the same partnership, it will also be reported on that partnership return.The net result to you is that you will receive a K-1 showing your income / loss which you then use to report on your individual return.If you made no money within the same year, you likely pay no additional taxes / get no additional refund.Best of luck.

@Vinny Muli - I'm working on using a HELOC to pull money out of a few SFR I have in an LLC name.

You can buy a house that need lots of work that's another way, do as much work as possible be the project manager how ever you can help to save money .BIG pockets can jump in on a MLS ride it out .