There appears to be a fundamental misunderstanding, Brent.

@Quinn Olivarez: "”getting it out of this sub to agreement that is probably not enforceable in most jurisdictions”  (Spoken nicely) I hope I misunderstand your meaning.

I simply wanted to clarify my position and avoid any potential misunderstandings.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

You misunderstand.

Many investors choose a profit-sharing model for true equity partners, often splitting profits 50/50 or based on the level of their contribution to the deal, but ensure everything is clearly defined in writing to avoid misunderstanding/miscommunication. 

I plan to use Airbnb / VRBO and understand they do a lot of this legwork for you, but would love to hear what I’m misunderstanding if that’s the case.

One of the biggest misunderstandings I see among real estate investors is thinking that setting up an LLC in another state allows them to avoid California’s franchise tax.

So, my experience has been that an LLC is a lot easier to properly maintain as an entity than a corporation, and hence much more difficult to “pierce”.Some confusion occurs because of a misunderstanding of the plaintiffs charges.

I think there is a misunderstanding here by the new posters who come on this forum to post about negative experiences with their investments in real estate syndications or funds.We experienced, long time BP members are NOT saying that you haven't been "ripped off"; we're not saying that the sponsor of the investment hasn't done anything illegal or unethical or anything like that.