In exchange, the GPs will get more equity or potential upside per member (makes sense, they are taking on more personal liability and all the work). 

I have a 1031 exchange coming up soon that I can leverage into $900K+ for one or more properties.

A client can also close on a new property in less than 45 days so no long closing or pre construction risk. 1031 exchanges are easy to fulfill with our model. 

It involves using Section 179 or bonus depreciation, and I would not DIY this project, as distinction between repairs and capital improvements is one of the most confusing areas of the tax law.And no, you do not need a cost segregation study to deduct these components of your rehab - if you have itemized invoices and receipts.Myth 8: for a valid 1031 exchange, I must exchange STR for another STRNo, you don't.

If I'm understanding this correctly it mainly makes sense if you either plan on holding the property or doing a 1031 exchange in the future?

I explained to the seller that my offer contained a substitution of collateral clauses and I would be exchanging the note they held on the subject home with a note of similar principal and interest secured by a different property of greater appraised value.

If you are going to pay anyone to learn, you should ask someone who has experience in the market that you want to invest in to teach you in exchange for equity in the properties you will buy as a partnership.  

Thank you,Nirav Since you already pulled the trigger...and are a limited partner...this means you have the benefits of that (i.e. no liability beyond your investment) in exchange for generally having no ability to vote or have a say in how the investment is managed. 

@Sarah Minor, You'll receive that money at the end of your exchange. 

It's possible it might not be a big deal if you'll keep doing 1031 exchanges but I always want to mention it as the "what-if" scenario if you get what I mean.