The ideal situation for an lp is to ladder into investments so there are still passive losses to use when investments do sell at a hopeful gain. 

Overall, my experience with Blake Capital & Ian Djuric has been completely unprofessional and complete madness, costing me significant financial loss.

It is better to take a small loss now than to hold on just to take a bigger loss. 

The excess passive losses will carry forward indefinitely.

I bought one last year that I will bring full cycle in the BRRRR in the next couple months but I did a lot of self managing, spread out the projects and took a monthly loss (rental loss) on one of the units till we had some more capital to get the deal done.

That is not to say that there aren't options for trusts that do provide asset protection, but these are typically irrevocable trusts that come with a variety of often unwelcome consequences including loss of flexibility and control, tax implications, etc.

You will be able to sell it at discount and still walk out with no loss.

That’s a big milestone.Since you mentioned you’re just getting started, one thing worth knowing is that if your income is under $150k, the IRS allows up to a $25,000 deduction for passive activity losses (PALs) from rental real estate against your regular income.

Our property ultimately did foreclose in December 2024.Sarah has lost significant investor money across multiple asset types, and I don’t believe these losses are being fully shared with her investors.

Early on, I met homeowners who were about to lose everything — not because they were bad with money, but because life had hit them hard with medical bills, job loss, or unexpected expenses.