Quote from @Rud Sev: Hello,I am new to the world of syndication (LP investor) and want to understand how taxes at a high level for syndication as LP before asking individual specific questions to my CPA.Notably, I want to understand how preferred returns/cash flows are taxed, if at all, until the amount invested has been returned.

I have STR investors in Florida making 25% cash on cash returns, long term rental investors picking up properties directly off the MLS and cash flowing day 1 in various states, and house hackers completely removing their housing payment from the picture allowing them to save for for the next property.The beautiful thing about real estate is there are so many ways to succeed and a plethora of strategies depending on your comfort level and how active you want to be.

That will get you from zero to about 80% knowledge level.1.  

I put the odds at 97% an investor does very well, 2% that through no fault of Praxis' the housing market and/or the economy enter a tail-spin due to inept political leadership at the highest levels, and 1% that Brian is the biggest fraud ever to fool me. 

.: I am trying to learn and understand... someone told me that its not just size of the home or level of the flip that determines profit, and that in some markets, what is considered a typical profit is 300k based on the 70% ARV formula.

Raising rents to market levels is a big deal and hard to do. 2.

Once you have consistent, high levels of cash flow then consider the “company vehicle”.

I would add there has to be some level of human monitoring going on.

They need to have enough disposable income to where they are not dependent on a high return, they need to be adventurous, they need to love the idea of owning a property in Costa Rica, and they need to have a very high level of trust in you and your ability to manage a property well in another country.

Almost all properties need some level of work, so if you drain your accounts just to buy a property, you could be in a world of hurt later on.