This is merely what I am hearing along with some suspicions.

He is a trusted associate, and I am merely a tax professional you never met.

No disclosure on the sewage problems or any of the interior rehab required as all the BPO listed was a mere $3500 repair estimate for exterior cosmetic issues.An out of state buyer would have no idea that his $90k "bargain" needing minor repairs was actually a $10k property requiring major repairs that exceed the value of the property. 

Raising the rents will not be as easy as merely sending out notices of rent increases.

@Jamie BanksI understand there are multiple parties: 1) displaced insurance policy holder (tenants)  2) ALE 3) The company that supplies all the furniture and install the washer and dryer. 

Reasoning for asking this is that it could potentially be a beneficial long play on acquiring a property through assumption, and as we go down in interest rates, utilize this monetary benefit to refi as it comes at a mere .5%.

And the whole time the banks claim promissory notes are merely evidence of debts.Does it makes sense now?

It was a win-win, and it all stemmed from a relationship built on trust rather than mere profit.The Benefits of a Strong Network: Off-Market Opportunities and Creative FinancingAs I grew in the industry, the relationships I built began to pay off in unexpected ways.

@Ashish AcharyaYou're merely reproducing the IRS position, the one I specifically challenged.

A more accurate way to describe it is "I received no income" - because you can have deals but still have no profit if your expenses are greater than your income.If you were actively looking for deals (and can document it) - as opposed to merely planning to start later - then you file Schedule C and claim business expanses such as marketing, driving, technology and so on.