They are offering me 50% commission on all money that I bring in. I

As an investor, I want the GP to work full time on and in the business/asset I’m investing in. I

As in, is there a tax loophole here to avoid capital gains?

Just like any business, you get out what you put in. I

For example with seller financing doing interest only if you can is a bigger win, especially if you get a big down payment as the risk typically in I/O is price declines, but if you put I/O vs/ Amortization side by side it would blow your mind the $ difference.  

The day you send money you lose control of your principal, receive title to nothing, you're at the whim of the promoter as to whether and how long you will receive any distributions and even when the deal you invested in is supposedly "successful" you're at the whim of waiting for the GP to decide to sell and return your capital plus profits.

OC is a great place to be in. I

The state I’m looking to invest in is Tennessee and I may move out of the country at the end of the year.

Only question is, which you choose to see and engage in. I

@Thuy Pham-Satrappe The type of people you see in the target areas that you are searching in is typically the type of people you attract for your properties in said target area.