Just speaking from a cash flow management/account structure perspective.As for someone being in the real estate accounting industry for over 2 decades, I can say that State Law compliance is big on this.

Losing 85% on a single REIT would’ve been devastating if you were all-in, but spreading out across 10 investments turned the overall outcome positive because of the winners.Here’s a few extra key tips to avoid big losses in passive investments:Focus on cash flow: Invest in assets that generate consistent income.

If you have the cash to purchase and close, then you will not need to use assignments.

Through preferred rates and quarterly cash flow, I strive to create multiple revenue streams for my investors.

Some buyers might see this as a bonus, while others may worry about tenant turnover or stigma, so it can affect the price slightly.Sell when the building’s cash flow no longer meets your goals, market conditions are strong, or you’re ready to reinvest into something else.

My goal is to gain a solid understanding of the process, master deal analysis, and ultimately close my first deal.Right now, I’m focused on learning the basics — from finding motivated sellers to building a strong network of cash buyers.

I’ve been scanning the market and come to understand as my first investment I’ll probably have to find an apartment/condo something like that and I typically hear of STRs typically making more cash flow etc.

If you take the $653K out of loans and put it in the cash line there would be no change to the total adjusted tax basis and therefore capital gains would be the same.

Scaling up properties requires cash flow or equity, continuous education, networking, mentorship, patience, and persistence.

I am not exactly sure what my goal is for the long run, but for the time being I'm looking to get a roommate, then after 2 years, to fully rent out my place and hopefully get some cash flow.