It is illegal, they have to be a financial advisor/broker dealer.

@Nathan Gesner @Anthony Angotti @Eliott Elias @Matthew Irish-JonesThank you for all your feedback and advice! 

Also assuming your just selling the contract your selling a security and your breaking security laws and need to be a licensed broker dealer.

It would be hard not chuckle during an audit when buying/selling so quickly in volume is clearly dealer activity. 

I'd think that would be the best chance of avoiding trouble.As to separate entities with the same owner, no, you do not avoid the Act. 1. having any business entity holding property means you are in business, that means you are a dealer, not an owner occupant and business with a consumer is covered.2.

@Matthew Irish-Jones thank for the helpful info!

@Kevin GeraceThe last time I read the rules on tax reporting for dealer dispositions, the rule was that all money spent on the property is included in the cost of goods sold on your schedule C (1040).  

@Matthew Irish-Jones is a fantastic resource, and I can recommend a few others if you want to send me a note.

You cannot change the location.Drug dealers are not moving on to another corner.Are you planning to live there with a military presence to back you up?

Because the IRS classifies individuals who actively purchase and remodel real estate for profit on a continuing basis dealers rather than investors, capitalized costs are transferred to Cost of Goods Sold when the property is sold.