Some form of contract or option agreement that I was looking for specifics on that would pass muster with audit or legal around the property being a temporary asset. 

You do not want to raise any red flags with the IRS and have them asking for an audit.

The accounting needs to satisfy the IRS requirement for record keeping in case you get audited.

@Sachin ReliaI know they just launched a new reit 2, in their last reit they have yet to submit their audited financials from 2022 (due by April 30th) or their semi annual report for 2023 (due by September 30th)They also have switched auditing firms in this new venture….I would ask them the status of the above.

No, probably not, at 60% LTV, yes that may fly with less concern.Much of it will be about the deal, the parties, collateral, LTV, and how much reliance there will be given to an audit trail of the transaction.

Not having your Operating Agreement could be disastrous if ever sued or audited.

While I have seen numbers like that posted before when I audit everything the cap isn't anywhere near stated returns.Sellers will say anything to try and sell a property. 5 plus units is commercial so debt and types of loan will be different from 2-4 units.I would verify numbers before doing anything else.

Even though I am trained to defend myself if I stop training and lose my conditioning and practice of my skills I will be just a little better off than anyone else.I don't live my life in fear.If you do that then you don't have any kind of life worth living.Avoidance and awareness are some of the two best traits you can have.Example: I could go down to Atlanta at night but I choose not to.When I go to a Braves game I park at the parking lot closest to the exit so I can get right on the expressway instead of being forced down into the homeless section streets at night for 30 minutes before I can hit the interstate.With the movie theater I still feel this person shouldn't have had access to get in.I think if an audit is done the theater will show very lax security protocol.

There is also a lot of liability and risk of audit if someone files a complaint against you. 

If I even refer someone and my records are audited and I didnt check the status, its a $3000 fine to me.