Business purpose is defined by CFPB ... haven't looked at it but it might be okay.Section 2. 

So why the confusion for so many that the BEST way to "tap" gains with real estate as an investment is ALSO with component of selling. 

Add to that a progressive income tax framework that steps down as the state hits defined financial benchmarks — with a clear path toward zero over time — and the long-term math starts to look very different for operators and investors.Layer in financing conditions, too.

Property type + age: The 4-plex and duplex often have the most “reclassifiable” components.

And on the economic occupancy piece, how are you defining that vs physical occupancy?

Great question, and the honest answer is: it depends entirely on what you define as "profitability" and your debt service structure.The leverage factor:If you're highly leveraged (80%+ LTV at current rates), your profitability math is completely different than someone who bought cash or at 50% down.

He claims to be the largest RE network but I am unsure how he define a RE network.   

It’s less about squeezing max leverage and more about locking in survivable debt while waiting out rates.Short-term bridge → refinanceOn paper it looks expensive, but when the exit is clearly defined, it’s often the only way to unlock deals banks won’t touch upfront (vacant, heavy value-add, messy ops).Off-market + flexible capitalThis is where most of the margin is coming from right now.

Hi @Everett Stephens, A cleaner structure is to clearly separate roles: fixed or incentive-based GC fees, defined profit waterfalls after capital is repaid, and arm’s-length brokerage commissions (or none at all).

Having two properties under contract with solid lender terms is no small step, especially on your first BRRRR.For the gap, I’ve seen new investors handle this a few different ways: personal liquidityshort-term private arrangementsor small equity partnerships where roles and downside protection are clearly defined.