But ultimately, any cost to the syndicator is ultimately a cost to the deal, which means that at the end of the day it costs the investor.Investors that can find quality sponsors, and do proper due diligence on them, can save an entire layer of cost by investing directly with those carefully selected sponsors versus investing through crowdfunding portals.Good luck!

If an asset is throwing off a certain yield that is not commiserate with it's risk, then investors will then begin paying more for that asset, thus decreasing it's yield....or start paying less for the asset which would increase it's yield, until it was at the proper risk/return rate to produce the yield that is truly reflective of it's risk.The problem is novice real estate investors get the risk/reward correlation backwards.

That said, there are alternative ways to meet the requirements, and with proper planning, you might not need to rely on these specific tests if most or all of the participation comes from you during the first year.

Do you have the professionals you need to start an LLC, do the proper real estate/tax accounting, solid contractors to rehab or prepare the property, and a property manager to handle the day-to-day operations? 

However, you must give both a 5 and 14 day notice (concurrently) which must be properly served, and it gets more technical from there. 

- Insurance Implications: How might allowing pets affect my homeowner's insurance, and what steps should I take to ensure proper coverage?

With my increased AirBnB performance, I decided to turn 2 other rental homes into short term rentals and decided it was worth investing in proper training to make sure I was doing it right. 

You have to properly vet and perform thorough due diligence (which I didn't do a couple years ago when I first jumped in).

Properly structuring your bank accounts ensures that every dollar in your business has a purpose.

However, with proper cash flowing properties, that would be well worth it in my opinion.