I’m thinking this could help us with tax deductions, especially if we operate at a loss.Does anyone have experience with a situation like this?

I'm trying to buy, fix, and rent real estate and created an LLC with my partner who is putting up most of the capital but he will not handle operations at all.

@Larry Caper if your goal is to do your own deals and you do not want to expose your investors to other operators then you need to create a fund of funds.

Your raise happens to be on the lower end of where such firms operate but certainly a plausible option assuming the investment thesis is sound & the GP checks out. 

We are currently in the final stages of an AI driven software that is going to essentially allow us to manage co-living properties effectively, without any of the staff or operations typically needed by rental properties.

We've already put together an LLA, and found a generic operating agreement online.

For new prospective investors who have more money than time, I think this might be a better first investment than trying to be an out-of-state landlord.You do all of your vetting upfront—of the operator, the asset, the loan, and the area.

Do you guys operate in North Carolina?

@Ryan Kline You either have a balance sheet we all envy or you are an individual who has no confidence in their ability to be a good real estate operator.

Also, this creates misalignment of interests as the deal unfolds.3) Check the details of the operating agreement.