But I’m thinking in order to use passive losses from other entities (multi family, SFR’s, etc) I would also have to show material participation in those activities in addition to the REPS, is that accurate?  

It can also provide significant benefits for short-term rental owners who materially participate in their rental activity, as these taxpayers may be able to offset ordinary income with accelerated depreciation deductions.However, high-income earners who do not meet the active participation or real estate professional requirements are generally unable to fully benefit from cost segregation due to the passive activity loss limitations under Internal Revenue Code 469.It is important to note that cost segregation is not “free money.”

We always have each individual do their own LLC and then the 4 LLS do a joint venture as their individual LLCs as participants.

There are many ways to do this, @Sasha Josephs, and it depends on your respective participation and funding contributions.

Full Disclosure is Required for Non-Accredited InvestorsIf any non-accredited investors participate in your deal, you must provide them with detailed disclosure documents.The SEC states:“[The company] must give any non-accredited investors disclosure documents that generally contain the same type of information as provided in registered offerings.”This is where having a Private Placement Memorandum (PPM) and Subscription Agreement becomes absolutely necessary.A PPM outlines:✅ The risks of the investment✅ The structure of the deal✅ The terms and conditions✅ The use of fundsA Subscription Agreement ensures:✅ Investors acknowledge they understand the risks✅ They meet SEC requirements✅ They legally commit their capital🚨 Not providing these documents could leave you vulnerable to investor lawsuits.4.

It’s a small move that can add up over time and set you up for future success.Also, as you get more comfortable, take time to understand Real Estate Professional Status (REPS), Short-Term Rental (STR), and Active Participation rules.

Quote from @Evan Polaski: I will offer the story of someone that found NOT success in passive multi-family.  

This means the average stay at your property cannot be more than 7 days, you will need to pass the tests of Material Participation or being a Real Estate Professional, and keep a log of the hours you spend performing “activities” for the real estate.In order to Material Participate, you need to pass one of the seven tests for Material Participation on the property.

Completely without my permission or participation, Steve sold all of the units and kept the proceeds.

Such attempts to silence individuals with legitimate financial grievances further erode public trust and raise serious ethical and legal questions.Furthermore, your threat of a lawsuit appears to fall under the category of a Strategic Lawsuit Against Public Participation (SLAPP) — a tactic designed to intimidate individuals into silence rather than address the underlying facts.