Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Do I care about your pro forma 5 years out that makes all kinds of optimistic assumptions?

Here’s how I’d break it down and strategize your entry point.Key considerations include the current and pro forma cash flow.

I've lost friends and family to substance abuse so it seemed like an opportunity to do some good and make money in the process.I negotiated a sweet deal, and was prepared to buy it myself, but a few of my clients expressed interest and I ended up helping two of them form a partnership.

Why form a corporation, what is the benefit of this step?

I'll drive you down the streets of Lehigh acres where they build and show anyone the gap between market rents (real asking prices) and their pro formas 

The Texas 3-pack investor Powerpoint shows a "first year" pro-forma of 3.49% cash-on-cash preferred return, which looks to be about what you are receiving.

To your point, passive real estate investment returns tend to form a bell curve, with a few underperforming, a few overperforming, and most falling in the middle of the bell curve.

The Exchange Accommodation Titleholder ("EAT"), often a sister company to the qualified intermediary, will form a single-member limited liability company and disregarded entity or ("SMLLC") to serve as the lessee.

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.