Almost every partnership fails and many end like a bad divorce.

Misinformation stating that the guru dropped out of school, was fired from his job, failed in his business startup, but when he discovered” the “secret” of real estate investing, met with almost instantaneous success7.

The court seemingly implied that they could but simply failed to do so.At this point, without a more thorough research, I tend to conclude that the IRS excluded H/W LLCs from the QJV treatment arbitrarily, without statutory support.

Unless you negotiate a new contract or addendum with your PMC, they do NOT have to abide by any requests/demands you make that contradict what's written in the management contract.If they have in fact NOT followed the terms of their contract, then you'll want to send them something in writing pointing out the specific language in their contract that they violated and ask what they plan to do about it.If they fail to correct or address the issues, then you'll want to start looking for a new PMC.

I view this as more problematic because the concept is so elementary anyone with a pulse can do this and many actually execute on bad investment decisions and and will be in a vulnerable position trying to navigate these liabilities while the coaches collected their fees and have no downside when the real estate investment fails.

Lesson: Keep a nice house and inspect before the inspector.Inspections then occur annually and you don't get paid if your property fails until you pass again. 

You are completely liquid, don't have to take on the risk of failed deals, vendors/partners that steal from you, or trusting a stranger to manage your properties well.I know that "buy index funds, don't buy real estate" was probably not the take that you came here to get, but that's how I see it in the current market unless you want to be a hands on investor.

And here we are, reaping it's failing yet again....

Pointing it out because experienced folks have fails.

Using a HELOC for your first flip can be cost-effective due to lower interest rates, but it risks your primary residence if the project fails.