If someone attaches a judgement against you; you will be on the hook until it is paid.Typically an umbrella policy is only a couple hundred for a 3-4 million dollar policy.I'm a tax accountant and represent people before the IRS.You will be treated as a sole proprietorship for purposes of flipping homes.You income is the sales price, plus any other miscellaneous income you may receive.

What does the Seller care if the Buyer is represented or not if their net is still the same?

Ultimately the appraiser has to decide which rate of change is most representative/applicable in that appraisal.

Find someone who can represent you before the IRS and has experience in this field.Here is a link to a page in which myself and J Scott discussed important questions to ask your current or potential accountant.http://www.biggerpockets.com/forums/51/topics/70447Publication 527:http://www.irs.gov/pub/irs-pdf/p527.pdfPublication 946:http://www.irs.gov/pub/irs-pdf/p946.pdf-Steven the Tax Guy

. :) I've been reading as much as I can and listening to a lot of Sean Terry's podcasts about wholesaling and I have some relations with people that I think I could get their property under contract and flip it to and investor, but I guess I'm more scared of the pitfalls of 1)Having something I could have to close on if I can't find a buyer(I know there should always be out clauses) 2)since I do have my realtor's license (but wouldn't be representing anyone) getting in lurch for what some people may say is a net sale or how wholesaling is "illegal" I guess is the real question I want to know is how do you go about getting over the fear of it and two how do you actually structure the contract.

This person will represent you when you're not around, he may have access to your checkbook and bank account (mine does), he may have the authority to negotiate prices (mine does), and he'll certainly be spending time around your houses, personal property, etc.

And, most importantly, connecting with sellers is key to establishing a sustainable real estate company sheltered from the inevitable market downturns.Your ability to connect is directly representative of your ability to effectively market yourself and your business to these lead generating avenues.

Water and sewer chargesElectricity for common areas like hallwaysAllowance for vacancy and credit lossIf I understand correctly, you would be carrying a very small (40k) mortgage, so with such minimal debt service you probably will still have a healthy positive cash flow --- but will it represent a sufficent return on 350k cash investment?

I would not even represent myself in an audit.

These tasks do not usually represent an appropriate return on the time we spend.