At the time of the cancellations, I found myself owning over 20 properties in partnership with various investors and joint venture partners.

There is a huge problem with unlicensed wholesalers and Joint Ventures here in San Antonio.

A standard 1031 exchange requires that the same entity selling the property also acquires the replacement property, which becomes challenging when proceeds are split between partners.Potential Strategy: "Drop and Swap"One approach is the "Drop and Swap" method:- Convert Ownership: Before the sale, the LLC distributes the property to the partners, converting joint ownership into individual tenants-in-common (TIC) interests.- Individual 1031 Exchanges: Each partner can then independently conduct a 1031 exchange with their share, deferring capital gains taxes by reinvesting in like-kind properties.Considerations:- Timing: The IRS may scrutinize transactions where the "drop" (distribution) and "swap" (exchange) occur in quick succession.

**Joint Venture Agreement**: If you are partnering with another wholesaler or investor, this contract outlines the terms of the partnership and how profits will be split.

They'll expect electronic payment options--easy open a landlord account at your bank and give routing number and account number to tenant (ACH payment). 

I would imagine the LLC will have its own EIN, but we will still report the gain/loss as pass-through income on our joint tax return.

Equity Partner (Joint Venture): You find & manage the flip, they fund it—split profits 50/50.

You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

Joint ventures or private lending can help you acquire more properties while reducing personal risk.

Qualified Joint Venture reporting is not available in this situation.