Derek, Basit,
Thank you for welcoming me to the community. This is very helpful and I too am happy to pay it forward as I go.
Seems like we will have flexibility in terms of the operating agreement and structuring the economics.
From what I understand, a few key considerations will be (i) where to incorporate, (ii) what structure to utilize, and (iii) what we will be the resulting impact to our personal tax situation/asset protection.
For example, I've read a series LLC could be helpful, however, it also seems that this structure has yet to be tested in the courts, and unless we invest in Delaware, the structure may not provide the type of protection we seek, compared to a standard LLC incorporated in the state where our investment(s) would sit.
On (iii), since our operating partner may qualify as a "real estate professional," so actively participating with more than 750 documented hours, they would be entitled to a different tax treatment vs the other 2 investors.
There was a helpful podcast by Amanda on this (#162) - so that's where I am particularly curious. I'm drilling down in this area now so we can put our capital to work soon.
Please let me know if you think there are any other points I should consider. I will likely jot a list of questions to make sure we are efficient with the CPA's time in the near future.
