Maybe you should liquidate a portion of your portfolio just in case.

@Angelo Llamas If your cousin rents out the property, it becomes a rental once it's "placed in service," meaning available for rent, and he must report rental income and expenses on Schedule E.

I believe you are in OR, one of my favorite States, but a long flight from pretty much everywhere.

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

The plan includes high-yield activities such as property flips and strategic acquisitions to provide liquidity and generate returns.

Baselane has the added advantage of synching with your Schedule E you'll use at tax time to file your taxes.

You'll generally still need some cash or liquid assets to get the deal done though even if they fund 100%. 

It could be 10:1, you could have an 800 FICO, and $5 mill liquid.

My current agent suggested if it made sense financially, to do some rehab work to get the properties rent-ready, but I do not have the liquid funds to do so and sell these as-is.

So, you need at least $500,000 in liquid assets to become a passive investor in your Co-investing club?