Then sell after the 1 year mark to avoid the ordinary income tax rate.

Tenant’s Maintenance ResponsibilitiesTenant will: (1) keep the premises clean, sanitary, and in good condition and, upon termination of the tenancy, return the premises to Landlord in a condition identical to that which existed when Tenant took occupancy, except for ordinary wear and tear: (2) immediately notify Landlord of any defects or dangerous conditions in and about the premises of which Tenant becomes aware: and (3) reimburse Landlord, on demand by Landlord, for the cost of any repairs to the premises damaged by Tenant or Tenant’s guests or business invitees through misuse or neglect.

And oh yes, I really enjoy seeing five similar pics of the same small concrete patio that hasn't been pressure washed in fifteen years.

Is there a more advantageous way to lend the money and have gains be treated as capital gains versus ordinary income.My goal is to continue to invest with this developer for years to come and roll over the funds, but not sure where I should start to come up with a better solution than ordinary income via a 1099.

The formulas they  use is for ordinary Joe's buying their own homes, but totally bogged down when applied to serious investors.I ran into this some years back, in 1993, when interest rates came down from rates of 15% to 7%.

Don't confuse that with the "real estate professional" status that would let you offset more ordinary income with passive losses.  

Title companies deal with wholesalers all the time so that's nothing out of the ordinary.  

. $10/SF for decks/patios and basement living space. $3000/acre.

I'm not an expert in Arkansas real estate but 9 million purchase price seems a litte out of the ordinary.  

Hello On a high level view how is capital gains calculated in regards to taxes as well ordinary taxes.