Holding properties in an S-Corp would, in most cases, trigger self-employemnt taxes which is something you want to avoid in the RE business.

Also triggers due on sale clause.

I was going to say - I bet this strategy went over really well during the anthrax scare - but what you just described actually sounds like the worst case scenario that could happen for type of marketing ( whats good is that you did not end up behind bars) one question - did it not cross your mid that someone receiving a package with a pill in it would trigger any red flags , given the hysteria going on at the time?

That is not a win in my mind Also, a sale especially short term triggers tax implications with no writeoff.

If you close the account (ie. withdraw your money) you will have VERY harsh penalties.

From what I can see, I suspect that 99% of wanna-be "investors" probably never pull the trigger even once so you should always have something to fall back on.

Unless something really unusual happens, like a stop loss triggering, I just leave it alone.

If the one you're working with doesn't pull the trigger, gotta find one that will.

Maybe that's a little harsh.

Such as traveling and scoping out areas untill I finally pulled the trigger on the property?