What’s the minimum a partner needs to do in an LLC (owning rental property) to be considered active enough to avoid it being labeled an investment security under the Howey Test?

“Sophisticated investor” is more of a loose label than “accredited.”

That’s a big deal, and it could make your next move a whole lot easier on your wallet.2.

Here’s a step-by-step guide to help streamline the process:**Organize by Property**: Create separate folders or labels for each property, either physically or digitally, to keep all related documents organized.

Even if you had the police/ city/ social workers get involved and the apartment was labeled unsafe living conditions the person would be displaced and given some sort of temp living situation by the city.

What I have seen in the past with this kind of thing is a warehouse facility that is used to fund the origination, and then the note is quickly sold either to an SPV consisting of raised investor capital, or to another third-party investment fund/bank that buys for yield, or securitized into a private label mbs/cmbs.

You develop the labor list and you send tradesman as needed to the project.To operate like the above, you really need your own money, like 150k - 200k+, or you need a PML that can step in and be your wallet on notice. 

Originally posted by @JD Martin:Originally posted by @Ika Sargeant:@Jay Hinrichs I wish BiggerPockets could vet some of the people who are supposedly experts or at least there should be a warning label to say; we do not endorse the experts.

When they lend capital they choose what the label is?

That’s not terrible, but it does mean you'll be feeding the property from your own wallet, at least in the short term.