The IRS sometimes refers to us as promoters. 

Howdy BP Community,Im new to the boards but have looked around other post.I'm hopping to get into the community to become a Private Money Lender to help Flippers and others finance there projects.

Other than the obvious of working within state & CFPB regulations, seller carryback transactions offer an almost unlimited platform of possibilities of terms, payments, IR, balloons, fee assignment and splits to mention a few.One of the key points to remember is that nothing happens in a seller financed agreement without the agreement of both the buyer and seller.I work w a servicer in Washington state. 

I think the IRS views CapEx and regular maintenance differently.Let me know if that sounds right.

Make sure you have performance on the seller or recovery of your expenses if they do not perform instead of just getting earnest money back as you may be damaged more than that if the transaction fails.Get seller IRS transcript tax returns to validate. 

@Eugene Beard - Schedule E (could also be a 1065 depending on how they do their taxes) is the IRS form landlords use to report the income and expenses for the property every year.  

Jake, definitely come to my REI meetup at Hops Bar in Morristown on 7/13. 

One other question - does any reporting need to happen to the IRS besides what I will state on my tax documents?

As for the transactions you describe, a secondary rule of thumb is if you're considering a workaround, would you really want to be in a position of defending to an IRS agent why you engaged in that particular transaction.

The IRS only allows a residential rental dwelling structure to be depreciated on a straight line method over 27.5 years.