.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

We invest in non performing loans and do some private lending as well.

The other quesiton i have is if private equity is starting to get involved in this market, companies like Apollo & Carlyle, does that change your feelings about getting involved in the space?

I have a potential private lender, but I need to determine if this is a viable investment opportunity and explore the best financing optionsYou’re a first time investor going for 36 units… alone?

We have two rental properties out of state.Consider Transportation:  One of them is a few hours drive away.  

But maybe its worth it if you don't have a place to get hard/private money for deals. 

Big cities tend to have more regulations, more crime, more leftist-leaning policies that hurt investors and private property rights, etc.

Do I give up access to transportation, restaurants, cultural activities, doctors, emergency medical care, religious and business activities, vet care and maybe more, to live in the country on my ranch or on the beach in a beautiful country, or do I keep access to all those things and live in the city? 

Because I am partnering with them instead of simply using them as a private lender, they are getting equity in the deal and splitting the profits with me rather than charging a premium on the interest payment.Im not really worried about the strategy, it is solid with low risk.

That being said, while the intent is that most investors in a 506(b) offering are accredited, the sponsor can accept up to 35 "sophisticated" investors into the offering and still be within the rules.All told, private offerings are 100% a buyer beware investment.