The Co-owners shall not file a partnership or corporate tax return, conduct business under a common name, execute an agreement identifying all or any part of the Co-owners as partners, shareholders, or members of a business entity, or otherwise hold themselves out as a partnership or other form of business entity (nor may the Co-owners hold themselves out as partners, shareholders, or members of a business entity).4.

Personally I think that the best passive income model is a systemized massive investment business Which doesn't require share holder participation. 

:On this topic, what are the pros and cons of a preferred shareholder vs common shareholders, I know if a real estate deal underperforms, preferred equity holders bear less risk than those who own common equity but would like to know more in depth details  This is one of those "Read the PPM very carefully" type of things. 

The attorney explained that they are in business to make their shareholders a profit, not to cover losses.

You name you and your cash buyer as 50% share holders.

I know it sounds correct, but it’s not.ROE is an equation Net Income / Shareholders Equity.