: The how-to book of syndicated investment real estate by Gene Trowbridge

I have been lurking the community for a while. Very intermittent, and now I have a new goal that coincides with life changes. My kids are transitioning to adults, I need to find a new place to live and will probably h...

It appears the HOA hired a licensed and insured contractor so you would hope their exposure is limited and that they are party to the lawsuit because in these types of cases everyone remotely involved is listed.My own belief is if I hire a licensed and insured contractor that I have hired someone the licensing agency has vetted as supposedly knowing what they are doing.

Conventional lenders don’t allow a seller second behind their loan anymore, so the structure has shifted a bit, but the idea still works.A good example I saw recently involved a small eight-unit building listed at $720,000.

I can't picture what the level of negligence or fraud was involved here.

When there’s another partner in the deal who’s also actively involved, proving enough participation can become more complicated.

I am becoming more involved with the business so I decided to get my brokers license and learn more about how other people manage larger complexes.

Quote from @Adam Wachter: Quote from @Rohullah Sharifi: Short-term rental (STR) activities require active participation and proper documentation to substantiate your involvement.

They can also file federal racketeering charges under RICO (the Racketeer Influenced and Corrupt Organizations Act), especially in cases involving large-scale mortgage fraud schemes.(18 U.S.C. §§ 1014, 1341, 1343, 1349 (2024).)Loan application fraud statutes carry up to 30 years of prison time and $1,000,000 in fines.

In most cases, the property manager ends up being the one truly running day-to-day operations, which makes it hard for the IRS to see you as “materially participating.”To meet REP requirements, two things have to happen:-You (or your wife) need to spend more than 750 hours a year on real estate activities, and-Those hours have to make up more than half of total working time for the year.The challenge is proving that level of involvement when a property manager is already handling leasing, maintenance, and tenant issues.