They did this to keep interest rates low to stimulate housing and the economy.

One thing I realize is that cost segregation is not a good thing for LPs.

There are 4 parts to every real estate syndication (group investment).1️⃣ The Deal2️⃣ Financing3️⃣ Capital 4️⃣ ManagementThe LPs (limited partners) are passive investors and want to put their money to work by investing in safe, cash flowing assets like apartments, but may not have the time, expertise, or desire to go buy an apartment community by themselves.

The curtailing of rental property financing is not driven by market fears, it's driven by gov't policy.The gov't is keeping rates artificially low with the intent of helping average homeowners (the idea being that "average homeowner" takes his $500/mo mortgage savings and spends at least $450 of it each month on consumer junk, maybe a new car payment, maybe eating out, whatever, thus stimulating the economy).

And LPs do no work at all.

Slick photographs and fancy descriptions only over stimulate the imaginations for prospective tenants.

Things like these demonstrate a huge misalignment of interests between the sponsor and the LPs, I can't imagine this is common. 

The Holdco (usually non-corp) can own entities below that will do real estate (multiple SMLLCs) and other operational business (can be corps, SMLLCs, or LPs).

And by investing your own cash as an LP alongside other LPs.  

And the more you seek pleasure for pleasure's sake, the more you end up steeped in misery, because we are not made for meaningless self-stimulation.