I'm my case, most of my expenses were incurred in 1984, so my CPA had me book expenses  in 1983 for the property as prepaid in 1983, and when the flip failed in 1984, we capitalized all the prepaid expenses from 1983, and actual expenses in 1984, into the cost basis of the house when it was turned into a rental.

Armando finds 4 mentors who agree to mentor him.Conveniently, each of the 4 mentors had 1 special skill.1 was good at finding the deals.1 was good at funding the deals.1 was good at rehabbing the deals.1 was good at selling the deals.After Armando learned the business from his 4 mentors he moved his family out of the garage to San Antonio with only $1,000 to his name.Now in San Antonio with only $1,000 to his name Armando buys 3 things.A pre-paid cellphone.Business cards from Vista Print.A briefcase.Armed with these 3 items & the skills from his 4 mentors Armando finds a great deal.

The first I rejected because although he provided proof of insanely huge pay checks, his credit was shot due to a foreclosure and poor money management skills.The second I accepted on an 8 month lease, pre-paid.

By doing this, in case of buyer default, we will still get our money back when we foreclose and resell the property.c) Only lend money if rehabber-borrower has at least 10% skin in the game (downpayment) + points upfront or 6-months prepaid interests.

The new loan amount can be no more than the actual documented amount of the borrower's                     initial investment in purchasing the property plus the financing of closing costs,                     prepaid fees, and points on the new mortgage loan (subject to the maximum LTV/CLTV/HCLTV                     ratios for the cash-out transaction based on the current appraised value).                 

Compare loans based on the APR, not the note rate.Points are prepaid interest, finance interest and you pay interest on interest!

Get Legal Shield (Formerly Prepaid Legal) or something first if you can so that you have access to attorneys affordably.

I'm into it for about $7K after closing costs and prepaid interest.

Check out prepaid legal to get part of your group together at least you can find a competent real estate attorney to look over your contracts,etc.Then you might want to form an LLC and purchase a small established business perhaps an Internet (one that does not require daily hands on management) for under $200,000 that generates income) We found a couple for our clients one costs $179,000 but generated $120,000 per year in adjusted gross income.Then purchase your 2nd and third home and you will be set money wise and able to meet your obligations easily.You have a plan and that is wonderful.

i was just wondering if anyone uses prepaid legal to have their contracts and agreements looked over and written up for use?