The small market size and relationship-based transactions make it difficult for new or smaller players to participate, which aligns with the earlier observation about the lack of services for individual investors.Overall, this market seems to present challenges for growth or democratization, as its current structure favors established, well-connected players with significant capital.

Thank to all of you that participate on here!!!

The STR loophole is all about “material participation”.

Aside from this any recommendation about groups that  should join or actively participate to maximize my reach?

I will ensure my attendance and look forward to participating.

The LP still has to meet the material participation rules in order to take full advantage of the depreciation losses even if they meet REPS. 

If you materially participate and the rental qualifies as a STR you should be able to take advantage of bonus depreciation on a STR.

For instance here is a snippet I saw on crexi:Non-ContingentEarnest Money Deposit: Greater of $20,000 or 10% of the Purchase PriceMarketing Fee: 5% of the Winning Bid Amount, $20,000 minimum$10,000 Participation Deposit

So I have gained so much from just participating at a fairly low level for a few years, but the people I've met and things I've learned have proved invaluable. 

My sponsors will market their net fees, but I have not participated in any pref equity positions, so not sure what is "market".