Quote from @Serena Lemmons: Hi All, I have been researching real estate investing for a while and feel like the next step is to meet some investors in the area that I can learn from.

The answer is NO, based on the language of Section 152(c)(3)(A):...an individual meets the requirements of this paragraph if...

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

However, as W2 earners, these losses are considered passive and can only offset passive income unless you or your spouse qualify as a Real Estate Professional (REPS) by meeting the 750-hour and material participation requirements or STR is used.

If they meet the requirements for a PE right the only way to actually confirm is again through the courts where a judgement is made.

The problem (as you have cited) is trying to understand what you need (you don't know what you don't know), where to get it, qualifying its source(s), and the validity and usefulness of all that.Pardon me if I've gone into this too much, but I meet many people with the same concerns that you are voicing and this is offered, as much as possible in direct response to your post.Please feel free to contact me if you have any comments or questions. 

@Dan Groveyes, go to meetups (real estate or business) and meet people in person and build a networkbut... no offense... i don't think funding an entry fee in second position is a particularly compelling investment

So much so that insurance actuaries agree they cannot charge a premium high enough to meet with the risk of those "vicious breeds."

They've recently introduced a program called "pre REO" which gives them a strategy to help pull investment capital from these assets which are waiting for foreclosure and exit so that they can recover some of the investment capital from the assets to meet redemption and capitalization requirements for the fund.

We went back to the first offer and let him know that if he wanted to meet the second offer, then we would sell it to him.