One of the biggest benefits of REI is using depreciation to defer/eliminate taxes.

Looking forward to seeing your accounting and investor insights.

You should work with a good CPA and lawyer.

@Hadar Giladi New development can be rewarding but growing markets do not necessarily make the construction project pencil TODAY, and that's what's needed to get a project approved and funded by a lender.

How long is the construction period and then what happens?

Or call around to find experienced realtors that work with investors and continue networking....

I'm curious how you structure your compensation if an investor reaches out wanting you to be their agent.As I grew in things and my service grew in 3 distinct branches of PM service, Buy/Sell service, and Consulting Service, I came to a point where I had to either eliminate the consulting which was often with those who wanted to do various DIY aspects, like those investors who are licensed themself and need the advice and help but not the "full-Monty" of someone else doing the whole thing and taking the entire commissions.

You will want to keep the whole transaction arms-length and documented; that shouldn't be a problem.It's all about how you demonstrate the intent of holding onto the property for productive use, and not just that you just wanted to avoid tax liability.

You need to understand and know the areas.

I'm fairly new to this and would appreciate any insight.