The down payment is just one piece of the puzzle.

And here you often have an overpriced HOA to deal with.I admit it's a puzzle.  

One solution to "chicken or egg" puzzles is always to build both a chicken and an egg at the exact same moment, simultaneously. 

There's also a small chance that the entity as a whole could create a separate corporate structure that would act as the dealer and leave the entity free to sell to that second entity and use a 1031 to pursue other productive investment real estate.Tis a complicated puzzle that needs quite a bit of fleshing out to really see what's possible.

None of this has to do with continuing educations requirements which is in addition to agent training.I'm a bit puzzled as to Mark's statement as to price fixing, just the opposite, not allowing brokers and agent to negotiate the price of services is price fixing.

They use a proprietary design where all of the parts slide together like a puzzle.

I am a new member here and to be honest I am a bit puzzled by the animosity regarding people's opinions regarding wholesaling. 

This has puzzled me quite a bit. 

That's puzzle piece number 1.Puzzle piece number 2 in the 1031 exchange is your reinvestment requirements - in this case you sold for 500K so you must buy for 500K.Puzzle piece #3 is that you netted after mortgage pay off 100K in cash - So you must use all 100K in the next purchase or purchases.So now just run the scenarios - your potential tax bill in CA on 100K of profit could easily be  30,000 or more.If you do a 1031 and buy for 500K and use all 100K in cash then you would pay no tax.If you do a 1031 and buy for 400K then the IRS perceives that as taking 100K in profit called boot (yes you might say that it is a return of capital or whatever but they have nuclear weapons and you don't so their interpretation wins).  

Percentage of ARV is only one piece of the puzzle. 80% of ARV with $1k repairs is a completely different deal than 80% of ARV with $40k repairs.