Pay under the Table??

[Michael Garcia]

When doing a flip, what are the pro's and con's of paying under the table. Do the benefits outweigh the risk? What do you do on your flip/rehabs/rentals? Why?

[Andrew Ware]

The pro is that you typically can pay a lot less because you are dealing with shady characters who aren't going pay tax on it possibly/often illegal aliens, unlicensed contractors, skipping inspections, etc. The con is it then becomes difficult for you to expense it. Plus there's the small issue of tax fraud.

I'd never risk it, I don't want to run my business or life that way. But if you do, then for goodness sakes don't talk about it on the Internet.