He is a family friend and we have even looked at some off market for sale by seller too that I identified stuff where he wouldn’t even earn a commission and he was happy to investigate for me - more of a looking out for me / family than counting a check (I am not looking for expensive real estate and he has owns the brokerage of 20+ agents, unfortunately my purchase isn’t much of a profit opportunity for the office but would probably be more embarrassing on him if we get something wrong  😂) Noted on the inspection though and I will stipulate it is a deal breaker on my side.

We have had good luck doing 15-20% profit on ARV in other markets.So if purchasing at the full $500,000.00 we'd be looking for a $700k sale price.

They offered a 20 % interest premium and 5 % profit sharing (i know too good to be true and there is something wrong).

To increase profitability, we brought on three more team members and shifted our focus entirely to outbound lead acquisition, pausing inbound lead generation.While we’ve had success with door-knocking, I’m unsure if we can rely on it alone to scale our business to the next level.

(after pay off, and cover insurance and taxes, profit of $1100 per month).Problems: We initially were trying to get properties paid off in 15 years or less so we would have profits every month in a short period of time.

Investing in real estate pays you in 5 ways appreciation, depreciation, cash flow, amortization, and inflation profiting.

Start-up costs are also deductible but are amortized over 15 years with a limit of 5k.Start-up costs have strict rules and your case might not be the same as this one.Case Summary:Timeline line of eventsStarted investigating property: FebPut first contract (canceled): MayBought first property: December 30thWhether a taxpayer is engaged in a trade or business is determined using a facts and circumstances test under which courts have focused on the following three factors that indicate the existence of a trade or business:Whether the taxpayer undertook the activity intending to earn a profit;Whether the taxpayer is regularly and actively involved in the activity; andWhether the taxpayer's activity has actually commenced.On the basis investor testimony, we may assume that he undertook this activity to make a profit and that he regularly and actively engaged in it.

Chances are you still got the in properties well under market value and can make a decent profit in the long run.

Challenges: You’re giving up a piece of your long-term profits, and if the project goes exceedingly well, the lender benefits significantly.

The deal is part of the retailer's plan to restructure and focus on profitability by 2025.