I had an interesting and insightful conversation with my tax team recently about how AHP is reporting these "preferred returns" on the K-1 as "Guaranteed Payments." 

If interested in having a conversation, DM me.

It goes both ways....let's carry on talking about RE investing and keep the personal conversations elsewhere.

After a few candid conversations, they realized they could negotiate slightly higher rents by offering small improvments..things like better loading dock access or upgrading the security features..turning a so-so cash flow into something much healthier.When you break down your family friend’s situation, it might help to consider these angles:Selling and redeploying capitla could open up opportunities in markets where cash flow is a bit juicier.

Let me know if you are willing to have a direct conversation and sync up. 

I am impressed this conversation is still going.  

Finding what works best is always your responsibility as a business owner.Since there were a lot of people who were questioning my credibility, I am attaching my booking conversation for 2024.

Unless the 600k property is in some crazy appreciation area, or conversely the 300k properties in depreciating areas, 1.2 million of property is going to be worth more than 600k worth of property in the future. 

Also, I assume a 10% property management fee in my calculations and based on initial conversations.

Learned how to manage conversations and creative financing.