I have attended several seminars, read a few books and I also participate in "meet up" events.

Researchers modified the ring toss game we play at the county fair and allowed participants to stand at any distance they wanted.

So to qualify would my LLC need to be receiving income that I actively participated in? 

Thank you all who participate in this great community! 

Hope this helps.Partner 150% OwnershipSelect ProjectAgree to Price of Offer and Other Conditions Submit Offer to BrokerAgree to Rehab Plan and Schedule Prepare Funding Opportunity Document Solicit Investors for FundingCoordinate Funding for the ProjectCoordinate Documents with Attorney for Funding Coordinate with Attorney Closing Dates and Fees Coordinate with Real Estate Broker on DetailsSecure Property Insurance and have Utilities Activated Secure Bank Account to Pay BillsPayments over $500 Require Approval of Both Owners Prepare On-Line Advertising for Property Available for Rent Upon Selection of Tenant Run Criminal and Credit Check Agree to Rent Amount and Security DepositProvide Updates to our Private Investors as to Progress of Project and Coordinate with the Bank on the RefinanceRequest Appraisal as soon as PracticalProvide Personal/Business Credit to Secure Refinance Close on Refinance Within Scheduled TimeExit StrategyPartner 2 50% OwnershipSelect ProjectsAgree to Price of Offer and Other Conditions Develop Plan for RehabDevelop Construction Schedule Develop Budget for Rehab Coordinate with Outside Contractors Initiate and Complete RehabLabor will be at cost as part of Participation to Operating Agreement Agree to Terms on Funding Conditions i.e., Interest Rate etcCoordinate Permits if Applicable with Government EntitySchedule Inspections and Remedy ComplianceSecure Certificate of Occupancy or Final Inspection Approval Both Members will Agree to Pay BillsPayments over $500 Require Approval of Both Owners Coordinate Showing Property to Prospective Tenants Select Prospective Tenants and Recommend to Member Agree to Rent Amount and Security DepositClean Up Property for TenantProvide Property Management and Maintenance Provide Personal/Business Credit to Secure Financing Exit Strategy

While it would be ideal to be able to decide this before investing, my experience tells me most people who think they want passive investing keep investing in more active participation’s the longer they invest and begin reaching for yield, or ROI.  

In my case it was the property management and HOA Assoc agreeing not to participate in being FHA compliance because of the amount of FHA foreclosures in the complex during the financial crisis.

@John NachtigallThank you for good advice.And I also thank everyone who participated in this discussion, every bit helps.

Eventually (Could take anywhere from 3-months- 12 months), you will learn enough to start participating in and getting a cut of deals.That's how I started.

sharing of revenue profits or lossessharing of capital gains or lossesis any payment to be made to either other than as share of profits, eg for ongoing serviceswill the participants be operating a ‘salary/dividend split’ – ie taking their month by month requirements by way of low salary, balance as dividends?