Basically just putting a step in the middle of a disallowed transaction that is really only there with no actual profit/business/clean motive except tax avoidance...is not valid. 

@Ajay Sharma can be quite profitable but can also be a lot of work.

Even getting out with a small profit will add to your return as long as you don't lose it all in taxes.

The real estate market has shifted dramatically in recent years rising interest rates, evolving buyer and seller expectations, and fluctuating property values are keeping all of us on our toes. For fix-and-flip pros, ...

They won't always be upfront about this with you but if know they're selling because they want to retire, that opens you up to different options vs if they're an investor just selling for profit.

I’ve been investing in RE for 10 years and hitting 19k/month profit not counting things breaking or vacancies.

Theyre out there, but they are largely impractical and not viable except in the most profitable deals.

Am I able to just send a 1099-MISC to the owner with their net profit only…ie the amount that was transferred to them minus all operating expenses.

Equity Partner (Joint Venture): You find & manage the flip, they fund it—split profits 50/50.

Whenever I’ve had questions, even when they aren’t profiting they’ve answered my calls.