Carlos, and others, are, it seems to me, merely pointing out that the behavior only stops when LPs stop giving GPs their money without making it clear that they can’t win until LP capital is returned.

I “add value” merely by identifying and investing in properties, notes, and partnerships where the risk adjusted return is greatest.  

I'm not sure yours is over zealous, maybe merely typical.

Are these home in stagnant C/D neighborhoods where the equity is merely principal paydown in neighborhoods with low home ownership? 

Merely changing the last name from Asturias to Castellanos and changing nothing else anywhere is a very low bar.

Most of the "co-GPs" that I talk to wouldn't know a thing about operating a real estate asset and are merely along for the ride because they were able to cobble up a million bucks of friends and family money.The private equity side of the real estate business has really been the wild west for the last 5/10 years! 

I have even grilled my own real estate attorney and paid his hourly rate just to see if I could get something out of him that I could bring back and use for my clients.At the end of the day I have found that there is no way to substantiate such allocations based merely off of a guarantee of debt unless one or more parties enters into a deficit restoration obligation.because so many investors and developers are risk-averse, a deficit restoration obligation is often times too much risk for them to take on an exchange for some depreciation, however, I still have numerous clients who are willing to take on that risk.

Public Adjusters:Represent: The policyholder (you).

A) The $40K cash on hand was not including my emergency fund and merely represented what I wanted to stick to as a low ~10% DP or to be used for a small refresh/reno. 

This means if you don’t have another partner, you typically would need to not only form a MMLLC, but you would also need to form an S corp to become a partner in your MMLLC so that you can effectively have a partnership.That amounts to two different additional tax returns that you would need to file at a minimum just to have a qualifying entity structure to become able to make an OZ investment (or only one if you have another partner willing to co-invest, eliminating the need for the S Corp).Many people don’t realize that it is not the acquisition of the property that triggers the qualifying gain deferral, it is actually the mere contribution of cash into a qualifying entity structure that causes the deferral.