When looking at out of state STR Loopholes the IRS is more likely to question how you are materially participating and managing the property.

If you're not participating, as you say, OK, but I will keep looking into it until I'm satisfied that is not taking place.

I know what would happen next would be rising inflation because supply chain logistic as major real time inflation number is also increasing, then I decide not to participate on any syndication (as caprate would go againts long term interest) and then I decide to sell one property as market would be peaking within six months.

And it needs to be in your area if you're going for material participation.

Yes its called a participation agreement but they all need to be in alignment and agreement.The other option is to raise is through syndication which gets a lot more expensive setup then each investor would be pari passu but would be easier for investors to agree to these terms than doing a participation agreement. 

Mezzanine loans have higher interest rates and may include an equity participation component, allowing lenders to share in the project's upside potential.These are just a few examples of the various types of commercial loans available to borrowers.

In court, the history of the transaction and the histories of the participants gets called into play.

Not so easyDisagreements happen - gotta be clear on who does whatActive participation required - not ideal for your hands-off friendsSyndicationProsLimited liability for your friends - they only risk what they investEasier to raise money from a bigger pool of investors - more cash for bigger deals!

This would be a basic package with available options offered to each participating home owner..

It's a great program for a veteran and a good program for a seller to participate in if the property is in good shape but not always the best option for a foreclosed property.