I used capital from a HELOC to purchase a note.

But you also benefit (historically speaking, only) from a higher capital appreciation rate than other markets. 

I am interested in starting with wholesaling until I have enough capital to buy and hold.

The 25% exemption noted above is designed for relief from market appreciation not capital expenditures.

I have a lender wanting to offset his earnings with us with some losses in other investments he made.

How is this done in regards to short term capital gains, recording the deed?

At that point, I put the house on the market and cut my losses.

BRRRR in order to recycle your capital and continue growing your portfolio.Not to mention infinite returns if done correctly and you get all of your money back out.

Any suggestions on lenders that would work with that type of capital or possibly I little more could become available.

Zillow stock sinks on company's plan to start flipping homes https://www.msn.com/en-us/money/topstocks/zillow-s...Zillow shares closed 6.5 percent lower Friday after the online real estate database company announced it will begin buying and selling homes, a capital-intensive endeavor.