Hard Money= Institutional investors or a pool of investors financing distressed and/or turnkey properties.

There are multiple ways to qualify for "material participation" but this would help to keep someone else under 100 hours. 

I have participated in a syndication as a limited partner, but want to branch out into private lending, loans of one year or less. 

With the lower LTVs offered by senior lenders these days, it may be tempting to look at preferred equity and it may make sense since technically it is cheaper than LP equity, but also keep in mind they have a higher liquidation preference (obviously) but will often want all the cashflow (or a majority of it) to come to them before the LP investors and will also want large reserves, so make sure you model out the cashflows and understand the end-to-end deal with the preferred equity investors.We have some institutional investors with whom we did a combination of a pref and JV deal and it worked quite well for everyone including them and the LP investors.

Nice try though.Myth 4: I'm hands-on, so I materially participate"Material participation" is defined by the IRS, not by your Facebook friends and not by YouTube gurus.

Non-recourse loans are typically more common with large-scale commercial projects or through institutional lenders, but most lenders prefer recourse loans where personal guarantees are required.The reason most loans are recourse is that it provides the lender with additional security.

I'd suggest finding the top sub-institutional brokers, building relationships with them, and letting them know what you're looking for.

If you would like to participate in a deal where you will have a community of fellow investors to share the journey with and help keep you safe, DM me.Best,Austin.

Despite rising interest from young families and institutional investors, the number of new SFR and BTR units is expected to decline sharply, from 34,000 in 2024 to just 9,500 in 2025, a 73% decrease.While demand remains, rent growth in this segment has turned negative, falling by 0.8% in Q2 2024 due to higher vacancies in 2023.

Spend more than half of your total working hours in an RE business in which you materially participate.2.