Whether it’s an offer to purchase a property, to provide equity capital, or to provide financing, I merely state the price/terms I’m willing to pay.

Hey Jeff without knowing any details everything is what you are able negotiate. but you have to take in account the years interest rate and purchase price and what kind of cash flow.I will say get a mentor if you’re inexperienced these kind of deals can go left if you really have little knowledge when it comes to structure .

A quick formula you can use is your estimated purchase price times .0134. 

What the IRS is concerned with is when you are doing a 1031 and want to purchase a property from a related party. 

Quote from @Daniel Green: Hey everyone,  I'm Dan, 35 here, I'll be able to make my first purchase in summer '26.

I plan to purchase a primary residence, multi-family home (2-5 units, 'house-hack'). 

We also have a different ESCROW account that holds the deposits for buyers purchasing our listed properties. 

You could also purchase below market value. 

The tax is based on selling price minus purchased price.

Quote from @Kody Smith: without getting too deep into my finances, what my strategy is...1. take loans to buy properties (leverage)2. fix/flip for day to day cash flow income3. use some of the fix/flip income to buy consistent cash flow through:- business acquisition, - commercial properties (MF and store fronts),I have no intention of doing ALL of the management myself, I will hire management as needed (medium term goal)my expected core role is money provider, evaluating the numbers, making decisions, and connecting with investors, wholesalers, lenders, contractors, and property owners.while I am just on step 2 of the journey, I am looking toward step 3 to stabilize, and not worry about if house prices drop mid project or not (or not worry as much) So to be fair this is more about obtaining and growing a real estate business not simply buying rentals for cashflow.