The only possible deduction from incentive pay, is existing liens or judgments against the Seller that need to be paid to enable clear title.   

In this case the w-2 partner is enabling the leveraging through the loan which the other would not qualify for, and the capital partner is providing the down payment.

Its not always about being the biggest and baddest or smartest guy or gal in the game. Really

Or you want me to give you a long term Lease and enable you to sub-lease to other people who will pay rent to live there, without owning said property?

However, there were 2 things that enabled me & those I assisted to expand faster & a heck of a lot more efficiently.1) We all know that our RE equity earns nothing cuz RE is totally market value driven; it could care less how much money you have in it.

The equity you can get from a single family home tends to be larger than a multi (if purchased at the right price) which would enable you to sell and trade up to a larger property without paying taxes (using a 1031 exchange).

This might help you be able to really pay those balances off quicker and not need to take out the personal loan, and also will enable you to keep your cash on hand for your property purchase and the inevitable expenses that will come with it.This all also is hinged on how much debt it is that we are talking about, and how much income is it that you bring in.

Every deal is not going to be roses, but again, I know enough to see this as potential so I am at least exploring it.The property is zoned enabling you to build two structures as well (duplex) which is really where the frosting is, otherwise I would not even entertain the deal if it was just a single home lot.My problem is a common one.

I met an investor at a meeting who told me they were able to get the lock box codes and it enabled them to act more quickly on deals.

What I don't know is if ownership will enable the leverage with new lending since the percentage of ownership (down payment) is no longer a question since you're 100% owner just as you would be if bought with cash.