You'll want to be clear on the IRS rule for material participation if you do decided to switch to property manager. 

Note origination where the borrower owns multiple properties with little or no debt, needs a loan for an acquisition, but can’t produce proof of income sufficient to get institutional financing.  

You anticipate that the winners provide much more profit than the losers, and you end up with a portfolio that produces a double digit return + a “salary” for your active participation over time. 

Or a DST which absorbs all your debt but still leaves you with some cash flow because of the institutional financing already on the DST property.  

So again, to be a passive participant is hard for all the reasons you note and more.  

Co-founder of Visio Ltd, operating a real estate investment fund across 48 states dealing in distressed single family homes sourced from financial institutions and sold to fix & flip and buy & hold investors. $100 million equity & debt managed.

You should never pick your 1031 Exchange Qualified Intermediary based solely on their 1031 Exchange fees, costs and charges or the size of the institution.

The insurer does not participate in any of the insurance guarantee funds created by California law.

We took them to arbitration, but they did not participate and we found out they closed their offices and I believe the owners are no longer residing in Florida.

I think the SEC would like to know about his participation with Norada and the current situation at hand.