My opinion is that if you are in an area that isn't appreciating then sell and exchange into something in a growing area.

Or there might be a standard note that is used in the state that covers most everything you want.Anything out of the ordinary should be covered in the initial agreement and not just sprung on the other party at closing.Similar to when you get a loan from a bank.

the property you purchase to sell will be inventory and hence all will be taxed as ordinary trade or business.

Plus an entity's purpose is to protect your personal assets from business liability (or to segregate business liabilities as you grow), so unless you have quite a bit in personal assets when you start out, an entity isn't even worth the hassle yet.

Lets call it growing pains.That said, as we move forward, we will be upgrading our equipment to prevent this from happening again.I want to express my deepest apologies for any inconvenience this crash may have caused for any of you, and hope we can count on your continued support as we move forward in the future.Sincerely,Joshua DorkinFounderBiggerPockets.com

Think and Grow Rich is an old title yet The Secret has done rather well.

While you are likely postponing the inevitable tax, at least you can grow it a little in the meantime.

Sometimes you have to wait on them for a long time (hence the deal above) but its sure worth it in the end.Take it from a former asset manager, with your system of staying on top of prices and timeframes, and making strong offers when the price is right, you're really on to something (as evidenced by your 9 REOs and growing).Congratulations my friend and thanks for sharing this valuable and inspiring story.

Hi,I'm new here and thought I'd introduce myself.I'm Stephanie and am a real estate investor inIndiana who deals with wholesale deals throughout the US and sometimes abroad.I'm hoping to grow my knowledge here and maybefind some deals.Chow.Stephanie :D

Hence you are re-investing the profits to grow the business to a more sustainable level.Like a start up company you have to put in money to get things off the ground.