I’ve seen over 10 loans called during “quality audit”.

Before he took such a drastic measure, I suggested that we audit his Va calls.  

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.

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.

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.

I finally had to audit the financials because I could not believe the amount of repairs that were done on my properties behalf.