Passive Income Tax Status for New Construction?

[John Michael Roberson]

I have been in talks with a GC in Georgia and his method of building is: He builds everything at costs and doesn't include any markup or fees, he oversees everything, I only supply funding, and we split 50/50 the profits after paying back the bank and all other associated fees.

Since I am only supplying the funding for the deal, is there a way I can structure doing this so that this is considered passive income for myself since I won't be involved with the construction or overseeing the project? I have some rentals and have more depreciation than what they rent for so if I was able to classify the new construction as passive income, I could then use the "losses" from my other passive investments to help offset the income. For additional reference, I live in TN. Married, both W2 earners at 225k combined. I fully plan on 1031-ing every property I ever own as a rental, so I'm not concerned regarding depreciation recapture.