People are going to expect a return in thier investment.

And someone jumping into this as a complete newbie can expect that they have a decent chance of making some expensive newbie mistakes. 3) On the other hand, I feel one of the main advantages of passive investments (via syndication/crowdfunding) is that I can hire a manager who has years more experience than I can ever hope to obtain myself.

Find out what they offer as far as education and support, what their fees/splits are and what their expectations might be.Remember, you will need a certain amount of continuing education hours, and you will want a Brokerage that has the support you need to help you through your contracts and answer questions.

They are a great person & I wish them the best of luck for future work.However, I'm somehow unable to justify the $25k+ I am expected to pay to them as commission on each $1M invested.If I am researching the market myself, creating comps myself, reviewing each disclosure myself, working with the mortgage lender myself, finding problems in the homes myself -  what is the value add that the agent is bringing to the table that I can't execute myself?

Mostly the ones getting into trouble are those who overpaid in 2021-2022 expecting rents to keep skyrocketing and cap rates compressing.

(the accounting theory behind it) Your question implies that you expect some logic behind our tax system.

🌲🏕️ 🔹 114 acres of outdoor fun, developed in two phases:🔹 Phase 1 (60 acres) breaks ground in mid-2025, opening fall 2026🔹 Budget: $8.7M for design, permits & Phase 1 construction 🏞️ What to Expect in Phase 1:✅ 1-acre dog park (separate areas for big & small dogs) 🐕 ✅ Bike trails & nature-based playground 🚴‍♀️ ✅ Scenic rest areas, restrooms & picnic shelter🏕️ ✅ Multi-use path along Eastfield Rd + parking 🚗 📍 Location: 13729 Eastfield Rd, Huntersville, NC 28078 📊 Real Estate Snapshot (28269): 🏡 Avg Home Price: $384,732 (+5.1% YoY) 🏠 Avg.

Just don't expect anything to come out if it. 

and 5 years is a long window for things to change in ways we don't expect (lower interest rates maybe??).

Its much harder to turn a property around in 6 months expecting to have 100% of your money returned back to you - but if you focus on the right property focusing on highest and best use with an ADU add (like mentioned), in-fill/lot split, or other rehabs - then hopefully a semi-decent property like that will perform like a champ in a few years.