Hey @Steve Watson - Without getting into a long winded explanation which should really come from an accountant, I can tell you that if you use a cash basis for your accounting (rather than accrual) you recognize the income when it is received rather than when the sale is made. 

How do your clients apply?  

What I wrote above does not create an attorney/client relationship between us.

Currently, the people that I have polled have went 80 20 against saying they will vet their own clients and that it would drive away more potential customers than bring them in.

In MA it is very technical and frequently my buyers have the security deposits returned to the tenants in case they have not been held the correct way or they could become liable.A couple of times I have had to go back after the seller because the tenant was able to prove they gave a deposit and the seller said there was none so my buyer client was on the hook.

What are the best ways to get new clients?

As to your client’s deal, if his forecast is predicting a 50% return over two years it’s very likely that either something was missed or the assumptions are overly aggressive.

A mortgage client of mine asked me this:"Please ask your network this question for me as I lean into r.e. investing:1.If you could do it all over again, knowing what you know now, what kind of investment property would you buy for your 1st unit(s)?

Understand the numbers and how to analyze a deal so you can easily recognize a deal when the opportunity arises.Two great books that I recommend on the topic of 'general' investing include Richest Man in Babylon and Set for Life.Happy investing!!

Their other client was defaulting and they did not want to go about the mess of selling off an entire portfolio, so they opened their rolexes and started dialing their top clients to buy the debt.