., you were the one that provided the links to what the consequences can be if something big happens.

@Nick B.The phrase in the Act is “adverse financial consequences”.

But, I’m not sure that’s really learning the trade/business.

Once all four are renovated and rented and stabilized keep on saving until you can buy your next project.In Detroit I’m guessing it’s something along the lines of buy for 30k, rehab 10k, rent for $800.Network a lot to find a good team for leads on deals, reliable trades people, etc.That’s my 2 cents

It helps to use the correct terminology, no matter how painstaking it may be, so that everyone is on the same page.In general, investment income from stocks cannot be passive in nature, as one of the prerequisites for passive income, with limited exception, is an underlying trade or business. 

That's especially true if I don't have faith that the particular client can necessarily handle all the consequences of the idea blows up.

Hello so here's what I'm (a general contractor) working with:The Deal:$20,001 for the purchase of City of 100,000+ residents / majority low income but plenty of opportunity including financing the construction from the government9 parcels of landARV (As is): 63kARV (with improvement based on comps): $700k - 1.4MM 1 commercial warehouse - 7000 sqft, undisturbed since it went vacantARV: $50k1 SFH- 5br/2ba - 20k sqft lot1 duplex- 5br/3baestimated construction - $30kThe business:1 year old$200k revenue - $33k profitEstablished trade credit but vendors never reportedExperian grade - BNo debt$6k in outstanding invoicesPersonal:Less than stellar creditTrack record of successful ROI for partners and private lenders (family)Have a credit partner who will be completely silent Credit Partner:794 credit scorecurrently has 11k credit limit0% utilizationSo in order to do this my plan is to:Increase credit partners credit limitsAdd me on as an authorized user to help raise personal creditEither do a business line of credit, hard money, non-recourse?

So… Many have paid substantially more for college… Many have paid substantially more for trade school… both are vehicles to get an education to help land a job and make money.

There are consequences when rent isn't paid. 

You want someone that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck and let me know if you have any questions.