Many ask how to avoid the seasoning issue? The answer is simple: I tell buyers' mortgage brokers up front that there is a seasoning issue, and they better use a bank that doesn't care about seasoning. The big banks won't do the deal, but there are plenty of small community banks and mortgage companies that will.

Second, when I have a contract on the property, I quit claim the property into my LLC. Why? When I sell it, the capital gains taxes hit my LLC, not me personally. That means if I profited $50K on a deal for the year, but all my combined expenses for everything under the LLC came to $45K, I only pay taxes on $5K.

Neat little trick. That’s why I have a good CPA. Find one who specializes in creative real estate investing. Don’t forget to tell your buyer’s mortgage broker that it is a corporate sale. He/she needs to know this.