If you are a highly compensated professional or business owner, it might not make a lot of sense spending time managing a property.  

I have to ask Stephen, and no offense; are you associated or receive compensation from traceestate.com?  

Just say no.I would almost never do this trade unless all my downside, including potential unknowns, were completely compensated for. 

LLC-A deducts the 10% management fee, while LLC-B reports it as active income, subject to self-employment tax but eligible for tax-efficient salary and distribution strategies.Ensure the setup has a clear business purpose, reasonable compensation, and documented management services to avoid IRS scrutiny.

Insurance and LicensesThe Subcontractor agrees to maintain:General liability insurance of at least $[Insert Amount].Worker’s compensation insurance (if applicable).All necessary licenses and permits required by law.6.

Maybe what I was thinking was that if I entered a DST with the known and possible exit strategy of 721 exchange, then I might compensate for the near to medium term potential risk of being upside down and realize a hit to capital at 5-7 yr exit.

Higher assets or cash in the bank increases what is called you compensating factors which banks/lenders use to qualify.

Iowa you may not assign contracts for compensation attornies wont close those.. same in South Carolina..

So he could be appointing his family members to represent investors and compensating them as he pleases.

During those 10 days, if they find issues they want repaired, compensated for, its negotiated.