Being flagged as a 'Dealer' by IRS - for this strategy?

[George P.]

Business entity - one member LLC
Strategy: contract assignment and contract assignment with short-term (one year or less) financing provided by the entity to the end buyer/rehabber.

Are there risks of being flagged as a 'dealer' for using the above strategy?

Perhaps this won;t be an issue if LLC is taxed as a corporation (self-employment taxes will be not applicable) if for this or another reason the LLC is flagged as a dealer?
Thank you for your input!!!

[Dave Toelkes]

If you have a W-2 job where you already max out on the income subject to social security, then the self-employment income taxes on your sideline business will be limited to 2.9% for medicare.

If this is the case for you, then it is hardly worth the cost and effort of maintaining a corporation to avoid so little self-employment income tax.