Time spent as an investor or in activities not customarily done by an owner does not count towards the 500 hours.One thing to note is that if you are married, you can combine hours with your spouse's to meet this threshold.

What is the minimum amount of profitability acceptable at a $60 million loan volume4.

Now think of this "work" as a combination of trade school and actual work.

It cashflows like crazy as is, you take out a tax free loan of $1.2M give or take, you leave it to your heirs when you die and they pay zero taxes. 

The seller was willing to take a secondary position on other property assets and provide a 3yr 4% interest on his loan.

Total profit less closing costs and commissions will be about 42,500 each or 85k total.I would for sure get a construction loan, may be worth approaching 2 or 3 different banks and getting separate construction loans from different banks. 

I used a conventional loan and was planning on transferring the deed over to my LLC. 

One powerful tool that can help investors secure better loan terms is asset utilization—especially when the DSCR (Debt-Service Coverage Ratio) is under 1.🔹 How It Works:If your rental income falls short of covering your mortgage (PITI), you can use liquid assets to supplement your income.

Pretty common, you can definitely use commission as down payment conventional loans and not have it count toward IPC as long as you're on the loan. 

Structuring Financing for Volume-Based InvestingTraditional financing methods like hard money loans work well for single properties but can be less efficient when you're scaling up.