If so you could qualify for the 121 exclusion and take the first $250,000 and $500,000 (If Married) of profit tax free, and put it into your next investment property.

You invest into the property and pay me for our services because we handle the renovations and then profit off of the ROI.

Once the investor enters the life expectancy of the capital expenses, financing, short term financing, rehab costs, turn costs, maintenance, and expected sale or rental revenue, the property management features will project the cashflow, equity, and profitability.

Unfortunately he's correct...any funds you keep are profit first, then basis.

If you have your operations dialed in, you're going to be quickly make a profit on that referral.

It took longer than we would have liked and it cost more than we would have liked, but we made a significant profit.

As I am considering this option, I am looking for a standard agreement from one of these companies.These companies are set up to make a profit, nothing wrong with that.  

You need a place to live, so find something that provides a roof over your head and the potential for a return.I know a guy that buys fixer-uppers, lives in them for a couple years, renovates along the way, then sells for a profit.

However, in this case it’s worth circling back in 3 months, 6 months, or a year because this seller wants to sell, he’s just not ready to give up his fantasy deal.If the seller’s response is acceptance of the outline of my offer but countering on price or terms, it may be worth negotiating because we MAY be able to get to YES.My biggest profits have occurred when I made offers that were nowhere near what the seller was asking and yet WERE ACCEPTED, or with small modifications. 

I make $3000 renting it out, the mortgage is $1500 plus the utilities so I am profiting $1000/mo.