Hi Joe,You structure the assets to where the properties are left to you heirs in a stepped up basis that wipes out the deferred gains.So if you do it right the accumulation of deferment goes away.No legal advice

I'm thinking the downside is that it's a pretty slow way to accumulate capital for additional properties but since I don't own properties yet I'm probably going to need collateral for loans right?

Passive...but you usually have to accumulate funds by doing active investing first.Actually, whichever works best on the deal at the time.  

For the years in which you have losses, you'll want to file your tax returns anyways - you can accumulate losses to offset future gains.  

So many others have nailed the key here, you can accumulate all kinds of information for free, some can take it and run, some need the hand holding and step by step guidance. 

I am accumulating knowledge in real estate before I get a full-time job and begin to invest.

The whole thing here is PRICE and CONTROL.Since real estate is what I do for a living I want to wring every last cent out of it and get the best margins and lowest price I can.I also want to manage and control my deal and invest locally where I live.Other investors might not live locally where they can invest and get the returns they want or they work a full time job and want to allocate some investment to real estate.These types of investors usually have many different types of investments in their portfolios (stocks,CD's,etc.)They want the balance of a decent return but not a big headache.So one investor might say I want 11 CAP and do it myself.Another might say I am happy with 7 CAP and being less hands on.It depends on your age and where you are in the investing cycle as well.Are you going for aggressive growth or have you accumulated a bunch of wealth already and just want decent returns above yearly inflation??

You do accumulate an outstanding balance which appears on your credit, but not as delinquent. 

If they don't buy they forfeit the accumulated credit.How does Dodd Frank / SAFE effect this transaction?

Originally I really liked the flat tax idea, but I have warmed up to the idea that a (reasonable) progressive system of some sort is the best choice.The reason is because of a phenomenon called "accumulated advantage".As a person becomes wealthier, it becomes easier to accumulate more wealth.