If you slowly demonstrate trustworthiness over time in another activity, and also tell people about your real estate deals in an indirect, non-salesy way, the trust you build up in other activities will get transferred to your real estate business, and people will begin to ask you how they can get in on your deals.The bad thing about trust is that once you lose it, it's very, very difficult to get it back.

The % of exchanges examined each year is so low that it is very difficult to get a true sense of what level of "intent" demonstration is truly appropriate. .

If you get audited, you would have to be able to demonstrate that you had the intent to buy and hold for investment and not buy, rehab and sell/flip. 

Lastly, I read in one of the forums that if you are using an all cash purchase then your Cap Rate and Cash-on-Cash Return would be the same - if you consider your total investment in COC then they wouldn't be the same if you don't figure renovation costs when calculating your Cap Rate.Below, is a purchase scenario - can someone please work through the Cap Rate and COC Return to demonstrate to me how this all comes together?

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.Sanitary facilities and a safe method of sewage disposal.

I have never asked to use a certain appraiser, but I have asked the bank to not use an appraiser because I thought they demonstrated poor knowledge of an area.

It all boils down to what you can demonstrate under audit. 

Value-add requires at least 15% down: "Maximum loan-to-purchase (LTPP) / loan-to-value (LTV) ratio: 85%o Minimum amortizing debt service coverage (DCR) ratios: 1.10x – 1.15x depending on market""Eligible Sponsors:Developers/operators with experience in multifamily property rehabilitation and in the local market with sufficient financial capacity" and Moderate Rehab requires 20%:"Loan-to-value (LTV) ratio:o Fund up to 80% of the as-is value, supported by the property acquisition price if applicableo Periodic draws of unfunded loan proceeds (as opposed to an escrow) to reimburse the sponsor for up to 80% of the renovation costs on a monthly or quarterly basis, as work is completed, similar to construction financingo Appraisal must demonstrate 75% as improved LTV (with fully funded renovation proceeds)""Eligible Sponsors:Experienced and well-capitalized sponsors who have successfully completed rehabilitation projects of similar scope and who are familiar with the Freddie Mac loan process"You're not likely going to be able to finance the additional amounts, most lenders will require first position. 

They can still buy from the related party if they can demonstrate that there is no tax avoidance/evasion going on or if the related party is doing their own 1031 Exchange.  

Of course the fact that deals for flips are hard to find demonstrates that it is a strong market for homeowner buyers too.