(Just an FYI: most sophisticated CPA firms (i.e.not turbotax or H&R block) have audit risk software that basically calculates your chances of being audited based on the tax stances you take so another good reason to invest in a good CPA)

If you want to get really sophisticated, you also implement a floor based on the depreciation of your assets on a per/stay or per/night basis.

It shows sophistication and even if the property isn’t for sale, chances are they have other properties they’d be willing to part with.

@Bruce Lynn To most people on this thread I would say if you have at least $25k & our at least a sophisticated investor & have 5 years or longer why not consider two things, syndications in mobile homes or multifamily & investing in straight rentals in Oklahoma & Kansas for straight cash flow & high cap rate operating aka above 7%!

I'd avoid sophisticated/complicated and expensive structures at this stage, especially if the only reason you need a partner is because you're both undercapitalized. 

You can talk with a securities attorney, but I'm sure they will tell you the same thing.Your best bet is to find a 506b offering that you can legally invest in as sophisticated investors.

@Reggie MaggardOn the equity side sophisticated or accredited passive investors look for an overall 15% return’ usually composed of a 6-8% annual cash flow from operation, and an annualized 7-9% capital gain in 3-5 years through either sale of the property or a refinance enable by note amortization if leveraged and increase in value due to operator effort or discounted purchase price.On the debt side sophisticated and accredited investors look for 8-9% for VERY SAFE loans where the collateral is A or B commercial property in a major metropolitan area and the syndicator is large and increased, and the LTV is 60% or less.

Take-outs are as important as it gets and deal breakers for many sophisticated LPs.

Most of them want accredited investors or at least sophisticated investors.

It is not super sophisticated or anything.