But all of this was when LPs were not diving deep because distributions kept coming monthly, an email was sent on a given day each month, and the only accountability needed was hitting projected returns, which was pretty easy in a bull market.Now, with more scrutiny from LPs and distributions not coming, those surface level emails are proving to not be showing much.  

Retirement distributions are considered taxable income(Federal and state).You mentioned self-managing the rental properties so it may be that the income will offset against the rental loss.However, you will still be subject to the 10% penalty.Have a conversation with your CPA and ask them to draw you up a draft of several different situations and see if that is something you want to move forward with.

This derives from the rationale of the 15 year exemption.  

OP if you’re primarily referencing new investors I would also have them focus on the LLC operating agreement and their operating procedures.LLC operating agreement address voting against cash distributions to prevent legal claims.  

*(If the LLC distributes K-1s to the managers, this confirms my assumption).

QUESTION #17: DO YOU PAY DISTRIBUTIONS BASED ON CASH FLOW OR DO YOU PAY IT OUT OF RESERVES?

The trustee distributes the owner's interest according to the owner's instructions, as I understand it.

@Dean Valadez I'm not understanding the pierce the corporate veil.If you take the money from the LLC for personal use, you would just mark that as distribution and any money you put back in will be contributions.

Do you collect rents and then distribute owner payouts + your commission using Baselane? 

@Dailyn SouderTo charge tenants in Denver, consider market rates, fair distribution, and transparency.