I'm currently a full time house flipper/ real estate investor, but am interested in starting my own brokerage firm in part to reduce the costs of my flipping business, but also to have full access to the MLS, provide secondary income, etc.In Kentucky, in order to become a broker, you must work as a licensed real estate agent for 2x years.

Sometimes you'll see distributions first classified as a return of capital and the preferred return second...this is done to reduce the preferred return by constantly lowering the investor's capital account. 

I have been reading a ton of material (including Bigger Pockets books!) on real estate investing to educate myself before purchasing my first property.I've been scanning the MLS and been in contact with my agent for t...

Thanks a lot for the answer, there's one thing above that confuses me.So let's say capital gain after selling is $110kpassive active loss from other investments $20klong-term stock loss is $30k. first scenario: is my taxable capital gain is $110k-$20k-$30k=$60k, so this 60k capital gain would be taxed by 15%.second scenario: (110k-20k)*0.15/federal tax rate=$13,500 ; then it would be reduced by LT stock loss of 30k then the actual tax impact is zero ?

There are some simple things you can do to reduce potential damage. 

There are a TON of programs out there that will pay rent on behalf of your tenant if your tenant has lost their job, or even if they are still employed but they have reduced hours. 

Off market deal, found thru a local agentWill negotiate to have purchase price reduced by 20% How did you finance this deal?

In the short term, shifting strategy to carve outs can reduce risk here or buying assets with likely quicker exits.

Just be aware of the appraisal and if it does not come back at your offer the seller may not reduce the price and you could lose out on the deal.You're also not required to use that agent unless you have signed a buyer broker exclusive employment agreement.

I am loving the commercial space and the reduced head aches.