As long as it isn't for their personal purchase.Per RCW 61.34 a “Distressed Home Consultant” does not include: A financial institution; a nonprofit credit counseling service; a licensed attorney, or a person subject to chapter 19.148 RCW; a licensed mortgage broker who, pursuant to lawful activities under chapter 19.146 RCW, procures a nonpurchase mortgage loan for the distressed homeowner from a financial institution; or a person licensed as a real estate broker or salesperson under chapter 18.85 RCW, when rendering real estate brokerage services under chapter 18.86 RCW, regardless of whether the person renders additional services that would otherwise constitute the services of a distressed home consultant, and if the person is not engaged in activities designed to, or represented to, result in a distressed home conveyance.   

While the net misreporting percentage is only 5percent for income subject to substantial information reporting, the net misreporting percentagefor certain categories of business income exceeds 50 percent.Requiring comprehensive information reporting on the inflows and outflows of financialaccounts will increase the visibility of gross receipts and deductible expenses to the IRS.Increased visibility of business income will enhance the effectiveness of IRS enforcementmeasures and encourage voluntary compliance.ProposalThis proposal would create a comprehensive financial account information reporting regime.Financial institutions would report data on financial accounts in an information return.

This 1 realtor also told me there's a lot of "institutional money" here and that people are willing to use real estate to park their money and just take the loss because it keeps the IRS from getting their money. 

These were always going to be sold to the institutional groups.

Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. 

Also, the homes are being sold to institutional buyers.

Unfortunately, this occurs at the expense of savers/lenders, which is a major flaw in the current monetary system.2. 

Here's my scenario:Rising interest rates make profits in real estate less lucrative than other equities for institutional investors. 

If his credit capacity is sufficient, and his experience sufficient, he may be able to obtain a loan from institutional sources to compliment whatever capital he’s personally able and willing to contribute.  

Hi Jesse, there plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country.