The folks pulling the scam have gotten pretty sophisticated, and it can be an uphill battle for sure.

Owners do not want to be or cannot be disciplined enough to deal with quarterly payroll taxes.6.  

Taking cash out of the business puts it into the salary category and brings payroll taxes into play as well as your income taxes.

This guy isn't no-money down investing on a pipe-dream, he was a sophisticated student of business and investing who was already crushing finances to the point where he could drop $350K and then qualify for financing on a $1.9M complex.I consider building a successful business to the point where I have so much cash that I can drop $350K on a $1.9M 38 unit apartment complex as a first investment and as a "side business" to be "massive action."

Please let me know who at the Cook County Sheriff's office he has on his payroll so I can hire him.

I'm sure i will look deeper into the rent, COGS (food), payroll, additional expenses (fixed, overhead), etc.

@Eric Anderson with the payroll burden, benefits, tax reporting and other costs, personally I wouldn't put the Full-time employee as a "Pro".Run the numbers to see if there is in fact a cost savings of paying a management company vs. the total all in costs of an employee.A reputable 3rd party PM could save you time and make you money if you manage them correctly.Looking at this another way, are you in the business of managing people or managing real estate?

They are excellent wholesalers.I once had a business partner that had a payroll for the mailmen he paid.Is there value in someone who has access to unique opportunities?

@Santiago Ramiro GiradoThere are a number of syndicators out there but if you are a sophisticated investor (and investing in a 506-B offering) you need to have a preexisting relationship with the syndicator before you invest.

I developed my own fairly sophisticated software programs that streamlines importing thousands of records into my database and then it creates mailing lists, or lists of phone numbers, email addresses and the software gives me the ability manage whatever I want to  do, very easily.Here is the problem with any mailing list I ever purchase from any company and I've been purchasing mailing lists going as far back as 1973 when the lists came only as a list on paper, or labels to paste on envelopes.The problem I sncounter with mailing lists is we will send 20,000 to 50,000 very nice letters customized with the property owners proper salutation on the letter and usually get zero responses, or maybe 1 or 2 responses that don't pan out.