@Ashish Acharya Curious, do similar rules apply to an LLC taxed as S Corp, where I have quarterly payroll filings and payments due?

We have insurances, payroll, marketing costs and loan payments (holding costs) to manage.

Just a much more sophisticated & legal way of earning.Anyway give it some thought & good luck to you my man.

I am at best a sophisticated investor, not a ‘SEC fancy’ earning 300k with 1m in investments.

DSTs are for sophisticated real estate investors that are moving on to a more advanced estate and/or portfolio investment strategy than fix and flips or buy and holds would offer. 

I invest in both and hear are some of my thoughts:CFD’sPositives - when occupied tend to have higher reinstatement percentagesPayments typically cheaper than rentHigher interest rates on loansMost states borrower defaults property reverts back to lenderMost states forfeiture vs foreclosure which is quicker and less costlyConsLower quality borrowerHomes typically in poor condition (don’t trust bpo)Title issuesLower monthly payment streamsNotes:ProsBorrower qualified at originationTitle insurance most casesHigher resale valueHomes usually better conditionConsForeclosure timeline and costIf house has equity goes to borrowerHigher chance borrower file BKMore sophisticated borrowerThoughts from others?

If you are sophisticated & not accredited, you can invest in 506(b) syndications, which are not publicly advertised and require you to have a pre-existing relationship with sponsors.  

It's a more sophisticated play but done correctly it's very profitable for little money.Or, you can make a deal with the seller and bring the note(s) current and give them some cash for moving.

Best part is you wouldn't even need to find the buyers, more money if you did but good chance you don't need to.Anyway give it some thought & good luck to you as it's a much more sophisticated way to learn.

I've been on the LP side of a few deals, and generally avoid them because while things may start out well, a few years down the road things change....The only LP deal I've entered after I got some degree of sophistication was a commercial deal something like this:1-It was a good deal, rehab of an existing building with a planned tenant.2-I put my money in, and it accrued 6 or 8% interest.3-The first series of payments were 100% return of capital and of interest, with a 95/5 split (95 to us LPs)4-all payments after that were 70/30 (70 to LPs)5-If building is sold after all capital and interest is returned, 70% of net proceeds go to LPs.The thing I really liked about it was that my exposure was at 0 after 2-3 years in.