On year six, you show a loss again, the IRS is certainly going to question why you are still in business if you continue to lose $ OR, where are you hiding your income.As Jon pointed out, speak with a competant CPA on the topic as I too have also heard of business owners (outside the RE world) show a loss in excess of five years and be able to hold off the IRS.

But I see what you're saying.Our inventory is selling at a premium because we're fully rehabbed and semi-staged.

Now of course the whole thing was staged even many of the people working there did not know at first, but once you seen the same people buy three in two weeks it was not to hard to figue out!

They just think that if they are in trouble they will be saved.I just thought the entire atmosphere was strange and staged.

Just don't use leverage and credit in excess or Bernanke will have to bail you out too (don't you wish).That must be your daughter.

Just to give an idea of one of my projects, here's the most recent gut-job I finished: http://www.reistartup.com/house-pics/the-second-chance-house-staging-pics The "before" pictures are linked to at the top.

Hi, Rich,I'm interested in getting into harad money lending, too, and wouldalso like to know more about your guidelines as well.I'm just learning about it, at the very beginning stages.

We will just have to hope that they will accept the $1,000 and go from there.My question is "Can we put any excess to the 2nd on the Buyers side of the HUD-1 and pay them out of our pocket without the 1st rejecting the complete HUD-1?"

Jeff,As a real estate Broker, I loved meeting with the Sellers in person when I represented a Buyer.First, I always set the stage by trying to find out the little things that were important to the Seller and we always gave in on those.

As Will said, you left out a BUNCH of the real world expenses such as taxes, management (even if you do it yourself), vacancies, advertising, office supplies, legal fees, entity maintenance, evictions, damage done by tenants in excess of the security deposit, lawsuits, capital expenses (not technically an operating expense), etc, etc, etc.