Pre-funding provides three distinct advantages:A) If they don't sell it, they own it, so they have to put in an extra level of due diligence care.

For the purpose of this conversation, would you make a distinction between someone who is otherwise-involved in the industry (e.g.

The distinction is that (in many cases) an LLC with have a manager that will  oversee the day-to-day operations of the LLC but does not have a financial interest (not an owner).

At this stage you have a transit hub with parking, commercial, maybe a few nice restaurants and bars, and the residential side become very attractive.I have see this happen in the UK as separate distinct phases that were unrelated.

@Joel Owens - You bring up a great point about the distinction between a REALTOR© and a licensed real estate agent, and I think we, as a profession, sometimes do a poor job educating the public about the distinction. 

For me personally I do both so I am sure to make the distinction.. and a happy JV partner who your giving an opportunity to can create some very long term and lasting relationships that are rewarding for both parties.

I like Lance Edward's (apartment guru from Houston) distinction between entrepreneurs and investors.  

No snow removal, thank 'insert deity here'.Great tip on the distinction of landlord tenant for larger units.

There is also the distinction between passive custodians such as listed on the nuwireinvestor page referenced and advisory firms that implement and support plans offering checkbook control.I strongly applaud your desire to have the IRA piece figured out before pursuing opportunities, as that is critical to your investing success as well as IRS compliance.Check out a handful of companies, both on the passive custodian and checkbook control side of the equation.  

Any properties that you want to put under the loan has to be put into a separate/distinct entity that you only put these properties under.