.- Should that $50 get classified as an expense to the property? 

Sponsors that meet this requirement are subjected to an objective review process and are classified into one of three categories based on experience.Crowdstreet does the following background checks as well: (and some of those include below)Bankruptcy and Lien SearchCriminal and Lawsuit Records SearchUCC Filings SearchUnfortunately, many syndicators I see today don't have enough experience and they have not gone through the Great Recession and survived it.

No word was ever said about IRS classifying you and your company as a "dealer" when you do many flips. 

The places I advertised are:a) Craigslistb) SD Reader (www.backpage.com)c) Paid subscription in Local newspaperd) www.rentdigs.comHere is the ad that i put in craigslist for your review:(this ad will be active only until Jan 22nd 2008): http://sandiego.backpage.com/ApartmentsForRent/_2_000_2br_beautiful_dual_master_bedroom_for_rent_in_sorrento_valley_wateridge_/classifieds/ViewAd?

When analyzing the area and price point of the property you can start to determine the risks and classify these markets will make much more sense.

I recommend this route as well as some independent research on the classified sites.Also screen screen screen.  

-----------------------------------------OTHER ACTIVITIES RELATED TO REAL ESTATEWholesaling could arguably fall under the following extended SIC CodesSIC 6531054 - Real Estate Buyers Representatives (wholesaler/non-licensed)SIC 6531026 - House Buyers (wholesaler/non-licensed)http://siccode.com/en/siccodes/6531/real-estate-ag...These are cross-referenced with NAICS 531390

How were we decieved [sic]?

And, notes are classified by the type of security given so having an LLC sell a single family home does not make it a commercial loan it's still a residential loan.

If we had stopped after Company A, I feel comfortable we would classify their costs as a Repair.