he takes $100k a year deduction, that offsets the same amount of taxable income each year.

This is considered "loan proceeds", and as such isn't taxable - except maybe in certain odd "alternative minimum tax" scenarios.

Federal Deposit Ins.

Interest expense is taken off your gross to get your taxable income, but a dollar saved is a dollar earned. :)

.* Make sure you're reporting good taxable income on your properties going forward.

Any profit from a flip during the tax year is taxable income to the investor (ordinary income tax plus self employment income taxes) regardless of whether the profits were reinvested in another acquisition.I believe the same thing happens with an S-Corp, that is, sale profit is taxable regardless of whether the profit was paid out in salary and dividend or reinvested in more property.

Hi Mike D'Arrigo,In a nutshell, most paper assets including and especially the stock market are being artificially inflated by the Federal Reserve;s unlimited "Quantitative Easing" (i.e. printing of currency) and suppressed interest rates, virtually at zero percent.

You then have a template for future deals and simply change the addendum or property schedule to suit the next deal.Use a good real estate attorney, preferably one with experience in private lending, so the transaction doesn't violate the federal or local SAFE act.Bills for carry costs could be emailed to him and paid from online banking as needed.This is a little more work for him, but much more protection that just dumping money in a bank account.Lather, rinse, repeat.

Costs Less: FHA loans have competitive interest rates because the Federal government insures the loans.

Yes, these things are exactly what I want to avoid, IE. any kind of taxable event!