Except for one rule of thumb: if you owe any payroll taxes for your employees, make sure to pay those first.

Payroll Protection Program distributions to Real Estate Companies in Texas that were over 150k.Raw data from public records$2-5 million L&B Realty Advisors, Llp Dallas TX$1-2 million D’Ann Harper Realty, Inc San Antonio TX$1-2 million Fidelis Realty Partners Ltd Bellaire TX$1-2 million Price Realty Management Corporation Addison TX$1-2 million Realty Austin, LLC Austin TX$1-2 million Smi Realty Management, Ltd.

I also develop fairly sophisticated software applications with MS Access and I developed several software applications for that I give to people for free.

@Matt Wilkes While a preferred return structure is "preferred" (no pun intended) by most sophisticated investors, you are under no constraints to only use that structure.

There are a lot of layers to being a sophisticated investor, and you will get there, but everybody has to start somewhere.

@Michael Plaks - S Corp will involve unnecessary complexity - accounting for extra entity, dealing with payroll, and it won't solve the problem fully - part of the profits must be distributed as salary with all social security taxes and only part can be distributed as dividends.

Depending on your point of view, better than a W2 employee as you skip the local pay roll taxes.

Start building relationships with people who syndicate now because most syndications are 506B (you need to have a pre-existing relationship with a general partner as an accredited investor or sophisticated investor in the deal before you can invest).

More investors lose it all by trying to be too sophisticated with basic principles like this.Your return will come from buying good deals over and over again. 

But it will be too late for him, if he's sophisticated with an attorney, to get his attorney to go to court for a temporary restraining order to stop you.