It is very possible for their "system" to include an exit strategy that involves cashing out and leaving equity on the table.

Hi All, I just recently found this site from the blog at 123Flip.com, and I must say I am really impressed with the level of engagement that this community brings to the table.

Hi Steven - The most successful real estate networking group I know of is the one where there are no sales, no promotions, just introductions and round-table discussions on what people are doing, what challenges they have and some story telling.We were down to 3 people that just showed up every week.

Leave money on the table for the fix and flipper.

Every real estate strategy has its different pros, cons and unique aspects.  

What's unique about this particular property is not the house but the land.

Also tying to figure out how one would explain to seller that someone else will be at the settlement table purchasing their property when you've been the one working with them to place property under contract (or perhaps you still show up to settlement to ensure all parties are comfy?). 

On the Bigger Pockets forums, S-Corp appears to be a popular (but not universal) choice for flipping, as an s-corp would help with avoid profits all being taxed as ordinary income (Federal, State, and then an additional 15.3% for both sides of FICA).In my case, tax rate something as follows:INCOME TAX- Federal (up to 36.9k): 15.0%- CA State (up to 39.3k): 8.0%- FICA - both sides of medicare and social security: 15.3%--------- Total Ordinary Income Tax Rate (Fed+State+FICA): 38.3%- Total Dividend Tax Rate (Fed+State): 23.0%I could be calculating this wrong, but for the flip scenario, I'm estimating the numbers as follows (just updated them to reflect new financing terms and flat-fee MLS): - Purchase Price: $14,000.00- ARV: $60,000.00- COST Rehab: $18,000- COST 5 months of holding costs (flip insurance, debt, utilities): $1,727.50- COST Closing costs (flat-fee MLS and marketing/ 3% buyers realtor fees/ county transfer tax/ 2% closing costs): $3,465.00PRE-TAX PROFIT: $21,707.50Applying the above tax table, the post-tax profits appears to be as follows: - No S-Corp total taxes (100% taxed at 38.3%): $8,313.97- With S-Corp total taxes ($1,500 taxed at 38.3%, remaining taxed at 23%): $5,222.23So, assuming my numbers are correct, with an S-Corp, it's a tax-savings of around $3,000.

Glad you are able to get your deal back on the table.

That, coupled with the water shut off, might be the wake up call your buyer needs to bring her to the negotiating table.