Because the entity you could go after, who has little capital to go after, sure you could put them out of business, and wouldn't ya know it 24hrs later that property is now under a new same/similar enhanced NNN lease arrangement to a new separate operational party who took over for the now bankrupt entity.And what attorney is going to burn through thousands of hours, trying to go after "dry wells"? 

If you had a ton of capital to invest then maybe that's different.

Distribution for Partners are track on the IRS Schedule K-1 in the Partner’s Capital Account Analysis section.

She does not have an on line mangement system though just sends a check each month with a little ledger of expenses.I have a client that runs a larger company and they do a nice job at least on all the deals I have done for them as a capital partner when I do the draws and look at my before and afters they do some really nice work in a timely fashion

The problems are with the inexperienced under capitalized people studying wholesaling strategies as put forth by a variety of guru/mentors and the temptation these people feel when they smell a profit.   

Refine exit strategies and partner with experienced teams for a mix of flips for capital and multifamily properties for cash flow and long-term growth.Good luck!

Less capital intensive and you can get your feet wet.

A seller not fully informed of these points may have legal basis for initiating a lawsuit against the investor/buyerFrom the buyers perspective any down payment, capital expenditures, etc may be at risk of loss if they can not pay off note IF it is called due.  

I am currently living in this flip to avoid capital gains and I'm looking for my next property to rent or sell.

If so potentially worth taking what gains you might have as tax-free capital gains and selling the property if you can get out a little more than you put into it?