Builders are stepping up to meet demand, and buyers are taking advantage of opportunities in new construction that they simply can’t find in the existing-home market right now.

I'm looking at small multifamiles and won't have an issue with capital thankfully.I am in Arkansas and looking to stay local-ish initially.

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

Start with the basics, don’t be afraid to ask questions, and take it one step at a time.

However, other factors will matter, and the rates of taxation are different for different components of this Step 3 result.

Step 1: pull recent MLS comps within +/- 15% sq ft, within 1/2 mile or so, within 3-6 mos.

I think leveraging the initial property even further with such tight margins is a train wreck waiting to happen. 

One question for the community is: What are the next best steps I should take to further educate myself and get started in this industry to set myself up for future success?

Getting his/her initial reaction could open the door to an agreement that works for both of you.

You will have to source these properties from a wholesaler, where you will have to put down hard non refundable assignment money at the assignment of the contract, or source them yourself.The steps to follow for a subject 2 property are as follows:1.