As other mentioned it's ultimately on the business owner to track income/expenses. 1099s being issued are more a compliance piece on their end to ensure you're reporting income. 

Basic, but functional faucet.Appliances ($3,500):Focus on essential replacements.Refrigerator: Energy-efficient model.Range: Standard electric or gas range.Dishwasher: Basic model.Consider deals, scratch-and-dent appliances.Lighting ($1,000):Recessed lighting in the ceiling.Under-cabinet lighting.Basic pendant lights over the island.Paint & Trim ($500):DIY painting.New baseboard.2.

And i spend my time making deals or typing BP responses.:) And travelling to my clients place of business and helping them do RE deals..

Maybe you did not explain it right, or maybe they want to see you succeed on your first deal then will throw money into the investment the next go around.

Is the way these lenders do business?

As a new real estate investor you have to establish some business goals, if you want to treat it as a business and not a hobby.  

I had no business activity in 2024. 

This is my first commercial deal and 2nd seller financed deal. 

LLC Taxation for FlippingSince you’re flipping the property in under 12 months, the IRS usually treats it as ordinary income because it’s considered a business activity, not a long-term investment.

My wife and I are a team in our business too.