There is a tradeoff between the time value of the current deduction and the tremendous potential ROI benefit of being able to obtain financing.Doing projections of your future debt ratios and other aspects of your "lending profile" is critical, and can potentially help guide you in how aggressive you want to be in taking deductions.Even local banks lending for their portfolio are under some of the same pressure to be cautious with subjective underwriting adjustments due to regulatory oversight/review of their loan portfolios, though local banks can definitely be much more flexible than secondary market originators.I'd be curious if anyone has had luck with getting tax return adjustments accepted by their lender, and what you did to prove your case.

Additionally, regulations are also set by regulatory agencies, FDIC, Comptroller of Currency and beyond that Fannie Mae, Freddie Mac, USDA, FHA, VA and SBA can and will go further by region or market area.As to seller concessions, generally if concessions do not exceed 2 to 3 % of the sale price adjustments are not made but in the narrative section the appraisal will mention that closing costs were paid by the seller (in comp 2, for example), but if it is not significant it may not be.This does not preclude the appraiser from investigating the terms of any sale.

Pursuing these short sighted methods is good for those who think wholesalers need to have regulatory crackdowns though.

I'd only add that perhaps at least a mention be added of new regulatory requirements being investigated before doing any seller financing, in that section, but it's still very good.I also hope people will take the time to get a better overview of RE before selecting niche investment strategies, especially as to local customs.

I have also found the regulatory agencies themselves to be quite helpful.

You might look into states with less bureaucratic and regulatory hurdles to jump.

You still win.There are people that have done all the licensing and regulatory stuff already.

As long as all of the transactions (however you arrange them) individually satisfy the statutory and regulatory requirements of IRC 1031 it can be done, no LLC required. 

As a landlord, you are liable for any failure to meet your obligations (regulatory or contractual).  

The "lingo" is different, what the investor may call wholesaling the Realtor may call it a net listing, so investors need to know the lingo used on both sides of the table.Investors as a group have no rules or regulations or ethical requirements (besides acting lawfully) but Realtors are restricted by ethical codes, rules of a broker and regulatory matters at the state level.