You probably do not qualify for REPS, but it has nothing to do with 1099s.

Check your buyer rep agreement for how that's arranged. 

I am looking forward to exploring these sites and getting my reps in analyzing them.

Keep in mind a fulfillment company might rep  Tony Robbins and other motivational speakers and rep your wholesaling guru or fix and flip guru like Tarik and his X wife were doing.. 

However, only those classified as "real estate professionals" (REPs) benefit fully from these deductions, which are usually limited to those who spend more than 750 hours per year or half of their work time in real estate.

Once you have REPS the distinction between passive income (or losses) and active income (W2) disappears and all those tax losses you have been banking can be applied to the W2.Good luck

Note that if you are married filing joint, only the spouse who is qualifying for REPS is able to count their hours.Step 4: Apply the quantitative testsPer Section 469(c)(7)(B), in order to qualify for REPS, you must meet both of the tests below:750-Hour Test: If you materially participate in a real property trade or business, you must spend 750+ hours during the tax year.More Than Half Test: You must spend more than half of your personal service hours in the real property trade or business in which you materially participate.Step 5: Material participation in rental activities Just because you qualify for real estate professional status does not mean that your rental activities are automatically considered non-passive.

If you are claiming Real Estate Professioanl Status(REPS), it is important to keep a log of your activities. 

Upon contacting Rent to Retirement, we were told by the rep that Delta "cut off" communication with Rent to Retirement and if we choose to continue with Delta Build, we will have to resolve issues with them ourselves as Rent to Retirement can no longer speak on our behalf.

Based on what you say, your business partner will have Suspended Passive Activity Losses if you decide to pursue cost seg + REPS tax strategy.