The IRS will appreciate it when they audit you.  

Private placements are inherently risky by that very fact - they are not regulated or audited  to the degree that a publicly traded company is.  

Thank you,BradIt is very difficult to qualify as a rep without managing your own portfolio .You may find someone to do it(cpa) but it's a good way to get audited. 

We don't do an 80/20 or 70/30 rule as it doesn't give you any ground to stand on if ever audited. 

As I stated in the post above I have my B.A. in Accounting and Finance, CPA eligible, Took audit and got a 70.... twice. now the option is to become a real estate agent to become a better investor because I would be working in the field etc. or focus all my time and energy passing the exams and working with a CPA firm. 

100% agree.. especially with syndication once your money is in their account you have zero control.. your not on the checking account your relying on either sponsor prepped financial although some are audited which is better of course..

That said, "chickens coming home to roost" from the various seller-financing deals done WRONG is a very strong potentiality, as issues of such will most likely grow in occurrence and thus possibly press internal audit's that uncover such, and resulting enforcement actions start enacting in a volume.

If you did the refi 3 months after, it could trigger them to audit you.

For example:- building 1: Me, Partner 1, Partner 2- building 2: Me, Partner 2, Partner 3- building 3: Me, Partner 2, Partner 4etc.By keeping everything completely separate, audit trails can easily be set up and the integredy of the Accounts are maintained.Each Building Partner can have read only access to the Accounts so they can monitor it for excessive expenses, fraud, etc.In fact, this helps build confidence in me as the manager for the Buildings amoung all 10 of my Partners.Is it difficult?

The size of your tax return, whether it’s 250 pages or more, doesn’t inherently increase your chances of an audit.