@Angelo CortezYou can still deduct, however STRs are reported on Schedule E, not Schedule C.The IRS expects you to file 1099s even without SSNs - which I personally always found to be puzzling.

Quote from @Femi Alakija: As a newbie, I plan to gain a deep understanding of real estate fundamentals, including financing, property evaluation, and market trends. 

.: 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?

Its a scare tactic and she is trying to bully you into letting her get away with this BS.You need to screen WAY better and/or hir e PM for future tenants. 

I spoke with Daniel E who seemed like a nice guy but as I learned more he told me there was a $1200 yearly fee to be a member.

And if someone clicks to schedule a showing it has a form to capture there information that goes into a crm that then starts a "prospect tenant" followup campaign including response text instantly to interrupt there search knowing we got there request and check there e-mail where we send followup information, links, directions etc etc. 

The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.  

Quote from @Dave E.: @David M.

Focusing on conservative estimates and fundamentals like location, schools, and market performance aligns with the way real estate has historically worked.

If you are sole member LLC you just take a distribution from your business account to your personal account.You are likely already reporting the income on a schedule E.