And if the loans aren't made, then the money creation doesn't continue. 

There is a lot of online services that advertise cheap, easy, fast LLC creation, don't fall for these scams.

For me it was the flexibility of being my own boss, potential for wealth creation and a platform to be creative and to help others to the same.

I have heard good things about Carolina Home Creations & Improvements.

@Gitit Hefetz, Another colleague on BP recommended I check out this website, when I too, asked about ADUs (Accessory Dwelling Units): https://maxablespace.com/Like what DJ said above - because of the housing shortage, the government has been a lot more lenient and has actually been pushing for the creation of these detached or attached ADUs in properties.

Further, the "buckets" for passive losses offsetting passive gains don't really matter a ton nor does a stepped-up basis at death as part of estate planning from perpetual tax-deferred wealth creation if 99 percent of one's ability to generate wealth relates to mixing their labor with capital in entrepreneurial pursuits. 

And there is certainly an argument for focusing just on real estate when your focus is on wealth creation.

I spoke with a lawyer about drawing up such an agreement between the two of us, and he said that he could create such an agreement for $5000-$7500 which did not include the two $1000 LLC creations he felt were necessary.

Initial LLC creation cost (~$1000 here in Massachusetts) is split evenlyI would then do a 0% interest mortgage for financing the LLC.

You can debate your own creation.