Investors that have been around the block a few times and are more seasoned recognize these faults easier than people with shorter track records or the inability to let go of control.

When I looked at the former owner's name I recognized him as a high profile individual who had been busted for drug traffiking.

The IRS recognizes it's existence for whatever benefits the issuing state might give but the underlying property is only reported on your individual schedules.  

A CCIM (Certified Commercial Investment Member) is a recognized expert in the commercial and investment real estate industry.

For example purposes, let's say that a reasonable salary for what you are doing is $50,000.Let's say you also make $100,000 from your W-2.So your employer and you together pay $15,300 of FICA taxes on your W-2 job.You also pay $7,650 of FICA/SE Tax on your S-Corp salary.Now when you do your taxes, all competent software packages will recognize that you've gone over the Social Security limit between the two jobs.  

It's patently ridiculous that the state has conditioned normal free citizens to believe they are liable for injuries resulting from duties other people accept without having to find any culpability of the hiring party.I'm not arguing that you shouldn't use license and bonded contractors, as lawsuits are real, buts it's sad that reasonable people don't recognize this as another modern day, historically novel, oppressive imposition of the nanny state

Will the IRS recognize this situation as compliant? 

One also has to recognize that it adds an additional element of risk.

However, I do expect this law if enacted will reduce the number of flips.This bill does not recognize the value that flippers bring to a market. 

Pace is definitely a force to be reckoned with but honestly after watching his videos for a bit you recognize a “formula” to his content.