Real estate transactions, especially flips, come with specific tax implications such as the potential for dealer classification, short-term capital gains, and cost allocation for renovations, which can significantly impact your tax liability.

And nobody is telling a lie in the transaction. 

I can also document that I have over 1,000 plus real estate transactions as an agent and an investor.I had two transactions that they just kept lying and telling me and selling me you will have CTC in a week or less, From each of those points it was more than 60 days.I begged loan officer and processor to be truthful.Their failure to close in a timely manner cost me dearly.

It's your books to report how you want, and to me it's not not illegal at all to do what you are doing.

While I did not work with other agents or lenders for this particular deal, my professional experience ensured a smooth transaction and effective project management.

In this type of transaction, there is no investor, only notes.

Don't expect these people to have anything to do with you once the transaction is over and a lot of bitter, nasty fights along the way. 

@Brett Coultas if you're a newbie, you want to be careful of an "investor friendly" agent selling you something they truly don't understand:(95+% of agents only know how to handle owner-occupied transactions - you can verify this by asking them calculate ROI for you or Cash-On-Cash!

I only use them on wrap/subto/seller finance transactions.

On the other hand, pros include increased cash flow, engineer-based data for the clients CPA, audit protection (with the right firm) and the ability to deflect that recapture fee with a 1031 transaction.