I recognized the number as the crazy seller.

The S-corp in question owns a 94 unit complex, 2 homes, and 3 condos.The rule is that BIG Tax is calculated on the lesser of the amount of the recognized built in gain or the corporation’s taxable income if the S corporation was a C corporation.

While I too agree with the dress issue, I recognize that the world is changing and that some of us "old timers" are often too rigid in that what works for us is the only way to go.It is nice to hear from someone that in the years to come we might be recognizing as someone who was ahead of the curve in trends.That being said, I have one problem with your posts.

I agree that the list broker has fiduciary responsibility to the bank, however, as an investor, one should be familiar enough with purchase and sales agreements and how to protect oneself rather than relying on some agent to do so.

And the decision is not always between managing a property oneself versus outsourcing it.

Title companies do not recognize a quit claim as a valid transfer of title.The bottom line is when wholesaling, assign the contract unless you need/want to do a double closing.

They just recognize a sucker and take advantage.Sorry to go off topic.

He agrees with virtually everything I've read about the Due on Sale clause, in that it's highly unlikely that a lender is going to (a) even recognize that someone else is paying the note and (b) go out of its way to act on it.

Only your investment gains are taxed as capital gains (which subject to political interference) will likely have some preferential aspects to them if not merely the ability to determine when you recognize them in your tax return.

I would recommend if he can hold the note he can spread out some of the gain over a couple years before you refi.With the 80/10/10, he would recognize 90% of the gain in the first year.