Of the remaining 1/3 most start at a price too high to be economical and end up as bank owned REOs.

He is getting his pay as 15% of the profit on sale so he gets paid when we do, so he's motivated to do the job well and on-time and within budget.

The remaining expenses carryover to the future as a Passive Activity Loss (PAL).Exception:If you qualify as a real estate professional, you are able to deduct more than the 25k allowance and are able to deduct passive real estate losses if you AGI exceeds 150k.Chris Masons, That is why I'm the Tax Guy.

There are some markets out there that took huge hits and will likely make very strong recoveries, while others that took big hits may remain low for the near future.

There are some really helpful wholesalers here who really understand the marketing aspects and how to find motivated sellers and end buyers.

It ended up costing an extra $600 in very small repairs that I know if they caused them they would have argued as normal wear and tear.Moving forward I decided to only address the major or noticeable items but keep tabs on the small stuff and remain flexible when they moved out.

I hear folks saying that there's no business model for full retail priced leads if you are not an agent.A yellow letters campaign turns up MORE of these types of leads than motivated sellers who will sell to an investor in todays market.

This loan is amortized over 20 yrs but had a balloon after 5 yrs (4 1/2 remaining).

From what I have seen, most Sub-2 deals come from pre-forclosure sellers motivated to move on.

The remaining ones are with Wells and they're total tools.