Capital and equipment.If the gross receipts and profits come from items 2 and 3, then that should not be associated with the shareholder-employees personal services and not be allocated as compensation.On the other hand, if most of the gross receipts and profits are associated with the shareholders personal services, then most of the profit distribution should be allocated as compensation.It seems to me that if you use a S-corp, pay yourself only a small salary, and are very actively involved in your flips, the IRS can step in and reclassify most of your pass-through as wages.

You have to remember the 50% is assuming truly passive involvement or at least paying for your time if you're doing it yourself.2) They're "small/accidental" landlords.

Can wholesaling be done as a side job and not involve the brokerage at all?

I want to get more involved in real estate but the market seems white hot and its left me with cold feet wondering when and how to jump in.

If you have rehab experience, if not, you may need a lead contractor involved who has experience.

Your closing will be much cheaper – say 1500 – because there's no lender involved.

I came across this site as well as the podcasts last week and am very excited to start learning from all the professionals involved in this community!

When they do they will see that you have the seller squarely in your back pocket.

Not sure how involved you want to be in getting it ready for market but here is my story.

Hi,My name is Russ and I'm a 60 year old business owner who has lived longer than the industry I've been involved with these last 40 years (newspaper and magazine circulation and advertising).