As I’m sure has been mentioned many times steady, partnership with a seasoned investor may be a great way for you to mitigate risk, get the exposure to multifamily, and still accomplish your goals.

I plan to go into wholesaling as a partnership, does anyone have advice they can give.

If I invest in a real estate LLC partnership as a limited partner and get k1 income can I balance them out. 

Partnerships?

I have a partnership interest in a commercial building that is projected to generate a cash on cash return of more than 12% and ROI of 15-16%.I would like to pull the cash out of this partnership interest and use the cash for the down payment on my next deal. 

This is why you ask lawyers and attorney a specific tax question, they always say it depends as there are so many variables C Corp S Corp Profit 200,000.00 200,000.00 Wages (80,000.00) (120,000.00) Employment Tax (6,160.00) (18,480.00) I might be off by about 1-2%, too lazy to search Pre tax/distribution amt 113,840.00 41,520.00 * Held back 20K for next year Corproate Tax (23,906.40)   Dividends 69,933.60 * Held back 20K for next year       Taxes on distribution (13,986.72) (16,608.00) *assuming 40% income tax level, 20% on QD Income Tax on Payroll (38,160.00) (48,000.00) *assuming 40% income tax level, C corp you have to pay PR tax at personal level Total Taxes Paid (82,213.12) (83,088.00)  I still do not know how you can split your profit with your partner without some sort of LLC or partnership agreement. 

With this partnership structure, he has an incentive to finish the job quickly and minimize rehab costs (minimizes his exposure), there is extra upside potential for him in the deal beyond just the contracted work, and you don’t have to front any money for the rehab, just the $100k to buy the deal and the note payments until you cash out refi.

My question is whether it would be possible for my parents to start their own llc and go in half with my FIL's current llc which to me seems like it might make it easier during tax season or should they form a partnership llc together for the flip. 

I have the LLC as a pass-through partnership, so whatever profits remain after paying all of my expenses is eligible for the new QBI deduction, as well as funding an I-401k plan.

But for a partnership or mentoring, I say what are you bringing to the table?