Because you are not changing the tax return that reports the activity of the property.But... the IRS holds the position that Husband/wife LLCs can only be disregarded in community property states. 

Those returns will give you some insight into the integrity of the Syndicator, as well as raise red flags of a possible Ponzi scheme taking place with your money.Let’s look at the balance sheet again on the IRS Form 1065.

Raising money is all about marketing and sales (not real estate specific) so either hire marketing agency and read sales books, or hop on some LinkedIn courses on marketing and sales.Not sure the legal structure to use: talk to accountants and attorneys.Need deal flow: talk to brokers and go to a lot of networking events.Lending terms: start calling banks and loan brokers.From there, it is all risk mitigation. 

Consult a real estate attorney and CPA to finalize the LLC structure and ensure the transaction, tax filings, and ownership terms comply with state laws and IRS regulations.

That's what I get from relying on the IRS forms.

Every tax season, I see people unintentionally overpaying the IRS.

Translation: your client cheated the IRS and the states.

(check page 7 of this IRS Pub)Something that's non-passive and you materially participate means you can deduct those losses up to the excess business loss limit. 

The IRS seems to hedge on this and I see other custodians marketing say you cannot have full time employees.

. - You should hop on a phone call with some agents in the market you are interested in and ask about the area, their experience, to run some numbers with you and then even do some virtual tours with you of some active listings. 2.