It's essential to screen your tenants thoroughly.

The court seemingly implied that they could but simply failed to do so.At this point, without a more thorough research, I tend to conclude that the IRS excluded H/W LLCs from the QJV treatment arbitrarily, without statutory support.

@Jacques CaspiTo succeed in real estate investing, I’ve found it’s crucial to budget for unexpected expenses, focus on thorough tenant screening, and build strong relationships with contractors.

They can be very thorough or not even superficial.

Just remember that they are listed there not because they have been thoroughly vetted and endorsed by Bigger Pockets.

Looking at the responses on this forum, I appreciated the thoroughness of a few answers and the genuine curiosity of another respondent.

Start small, build a strong network, and conduct thorough market research to align with your investment strategy.

Obviously I'll never know if they're reliable until I actually work with them, but I'd do my best to vet them thoroughly.. 

Quote from @Virginia VanOeveren: To start as a private money lender, educate yourself on real estate investing and lending practices, define clear loan criteria, and conduct thorough due diligence on borrowers and properties.

It takes a lot of energy to thoroughly vet a deal and a borrower to make sure financing is secure.