Or do they just go by the bottom up calculation you outlined?

@Jonathan Dempsey, thanks for taking the time to outline this for us.

The themes that I am picking up from the discussion outline a few possibilities:1. sell and upgrade to better properties, better, PM, better systems.2.

@Yusef PresleyI would avoid paying contractors hourly and make sure there is a construction draw schedule in the contract that clearly outlines when funds will be dispersed to the contractor throughout the project instead of one lump sum payment.

Many of the costs you've outlined above are upfront set-up costs.

However, it is the third factor—whether investor business had actually commenced—that is determinative here.In investor’s business outline, dated May 10, 2004, he indicated that he was starting Value Property Investments “for the purpose of buying, remodeling and renting property.”

Given the issues you've outlined, it's understandable why you could feel anxious.

Equity + Profit Share: Lenders get equity in the project, but rather than full ownership, they receive a share of the profits when the project is completed.Key Elements to Include in Your Proposals: Clear ROI: Make sure to outline the lender’s return clearly.

The key IRS provision that governs this is in Section 469, which outlines the passive activity loss limitations.

A few weeks ago I published a post on FaceBook outlining the sale of my cabin in the Moonridge neighborhood of Big Bear Lake, highlighting how I was able to sell above list and also above the Zestimate.