I was recently flagged for tax audit, and one of the asks was to show all hours spent on real estate.

We intentionally provide a number of checks and balances within FlipSystem (deal analysis, rehab bid audits, and inspection report reviews just to name a few) to ensure that our team is always providing feedback and analysis to clients on their potential deals.

I recently started a job working in audit after graduating college and I passed two of the four CPA exams so far.

If you're not dealing with a reputable syndicator or if you're doing syndications where the appraised values don't support the deductions being offered by the investment, you're going to risk taking a big hit in the audit. 

It is amazing to me how many people will trust their hard earned money with someone that was in middle or high school during the financial crisis.Beyond this initial search:Experiencetrack recordBusiness PlanAsset typeProjected returnsFinancial StructuresRights and remedies in legal docsRedemption rightsSupplemental Capital CallsOperations capabilitiesOwner/Operator or capital raiser for othersK-1 TimingUse of bonus and accelerated depreciation1031 optionsVertically integrated or outsourcedExperience of team through multiple market cyclesBackground, if any, prior to real estate and syndicationProjected returns net or gross of fees and carrySeeing full financials of current deals with budget vs actuals (if syndicator does not share, or only shares P&L delete their contact)Color on deals that went sideways or lost money and whyMarket analysisColor on why they like that dealRisks of the deal, as they see themDo they have third party audits, ideally from one of big 4 firmsAre they a fund or single asset?

How will you be auditing the construction budget separate from his “double-digit” interest rate on construction budget loan?

The cancellation form provides that necessary line by line break down, absolves us of that liability & helps insure that our Ohio Division of Real Estate audited trust accounting is 100% accurate. 

Have a purchase agreement on my first duplex and wanted to know if I should trust the Inspector that my real-estate agent selects/ recommends or find a 3rd party one that might be more impartial.

I work in audit, so I do all the due diligence before the tax work is done.

All you would need to say really is that you materially participated in the business during the tax year and just be prepared in the case of an audit/IRS notice.