They do their own due diligence, have their own analysts, do their own modeling, create their own PPM, marketing materials, tour the property w/the operator to understand clearly the business plan, making suggestions on strategy, maintain the relationship with the investor base over the entire life cycle of the deal, creating reports, answering questions, managing distributions, K1s, etc. 

@Scott Scharl I'm speaking in terms of managing communications, distributions, etc to our LP'sI've been looking at software like syndicationpro.com but it's too expensive right now.Features that software like that offers, but at a bit lower cost would be perfect.

Don't get me wrong folks this is not my technique, but I know some sellers that are taking these deals.

At that time you can create a property management company that collects all funds and then distributes the funds to appropriate account.  

They never boom and bust like Florida or California, but they also never correct like more volatile markets either.Using the wrong technique in a particular market cycle could cost you a lot of money in lost profits— or lost equity. 

The key building systems are the plumbing system, electrical system, HVAC system, elevator system, escalator system, fire protection and alarm system, gas distribution system, and the security system. 

So, if you reached out to me with such a proposition, I'd probably explore something along the lines if setting up a blind fund whereby your returns would stay in the fund and be reinvested and compounded until such time that you wanted to start taking distributions.Note - you would have tax liabilities in the meantime, so you'd likely want to take enough distribution to cover those.

I haven't earned the right to give you any pointers on how to manage that, but just be careful.Equity traders like to teach/preach the use of strict self-imposed trading rules as a risk management technique.  

@Marty SummersOf course, if you take a distribution from your retirement account you will have to pay the taxes and (likely) penalties.  

LLC interest if thats what your doing can have uneven distributions.. thats why we use themso you can own 81% of the LLC and spread the ownership to the others as you see fit.in your operating agreement you spell out how proceeds profits and loss are to be allocated.