Debt deals that give off Business income considered passive?

[Duke Giordano]

Hello All,

As a high income W2 earner I am not looking for investments that increase my ordinary income.  I recently learned about the existence of debt deals that give off whats considered "business income" or passive income as opposed to classified as interest what is considered as ordinary income.  This obviously would be of importance in a real estate portfolio that had passive losses from a RE syndication deals to offset some of each other as the debt deal may show passive gains.  Are people aware of where we can find these type of debt deals that give off "business" or passive income, and if so what is the typical rate of return?  Risk?

Thanks

Duke

[Duke Giordano]

Gotcha, so PPR is one of them that gives off K1 income.