When we engage with trades we do so in a manner as to preserve capital and mitigate any unnecessary expenses which include doing due diligence - which costs money - on something that won't trade.  

Preparing Loan Requests That Get Funded Lenders are driven by many factors; one of them is self-preservation.

You don't want to hold real estate in S-corp and C-corp - Owning Rentals in an S Corporation Might Be a Costly Mistake.That leaves you with the LLC - and even here there are many things to be discussed (when to do it, how to do it, proper transfer to preserve title insurance chain, DOS, financing, management, distribution of properties per entity, insurance etc.).The LLC is a legal concept, of no particular taxation benefit (you can have it as a disregarded entity for taxation, or taxed as a S-corp or C-corp).

He is correct in what he says - but he and other pros might not be you.If you are in a position where you are trying to diversify and preserve capital - then sitting money in a property (even at a relatively low return) might actually be the best option for you.

scaling up in the rental business on your own is a lot of work. you also want to preserve that 500k owner occ exemption.. don't lose that .. that's the best tax treatment in the US> I think there are syndicates and other passive investments were professionals can handle the day to day that could be appropriate for this investor..   

I plan to roll the gain into several DST’s and mineral rights.As I research QI’s I see companies such as Asset Preservation Inc. offering their services in conjunction with DST’s.  

Personally I ignore the upside of the good case because I’m a conservative investor and much more concerned about preserving principle than maximizing projected returns.

I had this tactic recommended to me to preserve capital for emergencies and rehab.

@Bryan Petrinec , even with the seller financing, you would preserve the 250k gain exclusion no matter when you get the money, you dont owe money in that gain.

A whole life policy structured properly can be a powerful tool for preserving wealth and accessing and passing it on tax free.