Capital and equipment.If the gross receipts and profits come from items 2 and 3, then that should not be associated with the shareholder-employees personal services and not be allocated as compensation.On the other hand, if most of the gross receipts and profits are associated with the shareholders personal services, then most of the profit distribution should be allocated as compensation.It seems to me that if you use a S-corp, pay yourself only a small salary, and are very actively involved in your flips, the IRS can step in and reclassify most of your pass-through as wages.

I ended up writing all my ten year projections out by hand.

Thrift store furniture will not work and neither will old hand me downs.

Marc can certainly answer that, I'll give him room to do so.Dawn, part of it is the old a bird in hand is worth two in the bush, a limp sum today today is worth less than receiving payment or that sum in the future, and future payments being paid in cheaper dollars.

:D I want to be really hands on for my first flip, and the next one's until I feel comfortable.

Almost unbeatable.One of my mentors, a highly succesful real estate investor and entrepreneur, once suggested to me that if you have $50,000 on hand, invest only $25,000.

I would like to have these on hand before jumping out there in order to review them and understand them myself.

Hand deliver blind offer letters to unkept houses.Blind offer verbiage:*** I was driving around the other day and happen to pass by your house on 5th St.

We haven't discussed financials too much other than capital on hand and possibly tapping equity or 401K for additional capital if needed.

Since then, I have hired a manager and now bring home the same amount of money that I did in my JOB from that facility but I only dedicate 1 day per week to hands on management.