"In a 2016 paper, Mark Zandi, chief economist at Moody’s Analytics, estimated that full privatization of Fannie and Freddie would cost the typical American taking out a new mortgage $1,200 annually.

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

How about a house with an ADU, or a basement with a private entrance that can be rented out?

I love how you compared it to real estate-it really highlights the pros and cons of both.

But maybe its worth it if you don't have a place to get hard/private money for deals. 

VC Firms and buyers would be looking for a portfolio that doesn't just have 1 or 2 streams of income, but rather also having the direct bookings and social media presence.There may not be many buyers who would purchase a 10-15 property portfolio, but if you scale to 30-50 or even 75-100+ Owned Units, I would think that VC / Private Equity firms may be interested.

Now, this was all done with someone's private money so is it private money or hard money?

Any insights from your experience, whether positive or negative, would be greatly appreciated.The attached link explains the current situation with the Detroit Housing Commission (DHC), highlighting that they are severely understaffed and have limited communication with both tenants and landlords.

.- Tax Benefits & Currency Arbitrage: Some overseas markets offer better cash flow, tax incentives, and lower property costs compared to the U.S.How You Could Structure It- Create a Private Syndicate or Real Estate Fund: Raise capital from U.S. military, contractors, and government workers to invest in properties near U.S. bases overseas.- Focus on Key Military & Expat Cities: Target locations like Ramstein, Wiesbaden, Rota, Naples, Seoul, or Yokosuka, where thousands of U.S. personnel need housing.- Offer Fractional Ownership or Managed Rentals: Investors own a share of multiple properties while you handle property management.- Leverage Serviced Housing & Co-Living Models: High-end, furnished rentals for military professionals, digital nomads, and traveling contractors.Example Strategy- Raise $1M from 10-20 investors (military/gov personnel) to buy 3-5 properties in Germany or Spain.- Use seller financing & local bank loans to maximize purchasing power.- Rent properties to military families, U.S. contractors, or co-living tenants for stable cash flow.- Utilize local tax incentives and investment visas to increase ROI.Why This Could Be a Billion-Dollar Play- Solves a real problem for U.S. military/gov professionals looking to invest overseas.- Provides stable, built-in demand (military personnel have guaranteed salaries & housing stipends).- Creates an alternative wealth-building strategy for a niche group of investors.- More scalable than traditional rentals.

They must reimburse you for taking your private property and using it.