Since this is a short-term flip, the IRS usually sees it as active income, but if your role is truly hands-off, there might be a way to treat it differently.Have you thought about how you’re structuring the deal?

(HousingWire)In stark contrast, recent figures show a sharp drop in foreclosure activity.

The rules are designed to prevent related parties from engaging in exchanges that shift high basis property for low basis property, followed by a sale of the low basis property, effectively "cashing out" without recognizing gain.If you sell a property to a related party as part of a 1031 exchange, both you and the related party must hold the exchanged properties for at least two years following the exchange.

The 'good guys' on here can help the newbies by pointing out the very obvious trolls......Just my $0.02 I think if we have active moderators and active community to help put them back in the bag it will be fine as well.

Personally I wouldn't feel comfortable trying to wholesale a relatives $1M home knowing that I am breaking the law if I cross over into doing anything that can be considered representing them in the transaction, and knowing it will only be marketed to people who buy properties wholesale (typically investors who don't want to pay retail prices), instead of the majority of retail buyers active in the market who are typcially willing to pay more. 

This doesn't necessarily mean just an investor, but somebody who active works in the space and puts in at least 700 hours of work into it per year. 

Networking with local real estate investor groups can also help identify lenders active in your area.

The priority is consistent recommendations from active investors. 

Everyone here wants to be active investors not passive investors.

I would also pay by activity not by the hour.