If they work independently, set their schedule, and use their resources, they might qualify as a 1099 contractor, but misclassification risks IRS penalties.Wages for W-2 employees and payments to 1099 contractors are both deductible business expenses, but compliance is key.This post does not create a CPA-Client relationship.

We value the opportunity to work with clients and partners in the real estate community.To address @David Ramirez' suggestion, if any title issues are found, the earnest money is fully refundable.

I've sold over 80 homes personally in the last 30 months and I'm usually within $5k of the appraisal report when I run my CMA for clients.

If the same client merely invested with a gains plan, or 25% return, they’d end three years with only $43,500, which is $130,500 less than flipping!

@Marcos De la Cruz There's no hard & fast minimum - it's based on your personal return preferences...usually I recommend to my CFO clients that they make an annual somewhat higher than what they could get by investing in the stock market.

Hey Isaac, I have investor clients who have bought properties in Cleveland and Akron.

A client of mine in Maryland added smart home features to their rentals and boosted rents by 12% with minimal investment.

For every angry client we have many more that are doing just fine!

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

Based on an inspection report on one of the deals I worked on last year, I was able to negotiate over $15k of credits and repairs for a $200k house using a $400 inspection report for one of my clients.