Our exemption allows for up the 35 non-accredited investors anyway, but the group managing the projects really is separate and distinct from the fund.

They are the same thing from the IRS' perspective;- From a legal/asset-protection standpoint, the difference is between a corporation and an LLC, and from a legal/asset-protection standpoint, the election of s-corp is meaningless.So, while I'm certainly no expert on this topic, make sure that when you talk about the differences between the two, you specify if you're referring to the tax implications (no distinction) or the legal/entity implications (likely big differences depending on statute, structure, number of owners/members, etc).

OK well if it has an HOA then that's a distinction that doesn't really matter for these purposes.

Ebere,I must distinctly disagree with you as IRS rules and regulations state that all expenses in preparing the property for rental activity(defined as listing for rent or actually renting which ever comes first) are added to basis.He inherited the tenants when he filed for the deed of a home in which as he stated the intent was to flip.

Any suggestions appreciated.There are two distinct types of financing and both require your and your money partner's ROI requirements and risk thresholds.One: An equity partnership is where operating partner and money partner have an ownership stake (title) in the property.

I feel that this one may be trying to avoid declaring income based upon their distinct rejection of receiving a 1099.

Let’s hypothesize: Split your RE operation into two distinct lines of business 1.

Ibrahim S,It is distinctly possible that it may be able to get it discharged.

Yes, there's some that only do non owner occupied but it's not a monolithic among hard money lenders so the fact that we're debating that point shows some want to be message board know it alls instead of just giving feedback.Saying the lender owns the property is a distinction without a difference.

HOWEVER, most FHLMC/FMNA / SECONDARY MARKET institutional lenders require that the originator have the NMLS endorsement for ANY 1-4 family loan, whether or not the loan is for consumer purposes, so many people think that is the law, which it's not.I believe that 90% of the people in the lending industry aren't aware of this distinction.