@Eagle Yeh cash flow is a function of risk and effort - higher risk and higher effort markets yield higher cash flow.

Their capital comes with a lot of strings attached and are functionally similar to a hard money loan process. 

Hard money can often function like private, and I find many people when starting out need HML vs PML….its a way to get a notch on the belt, and then on future deals gain private money.  

That's the function of a commercial cap rate.I don't invest in commercial properties, only residential so I have no use for cap rates. 

Individual Income Tax Return), Schedule C, E, or F.If the only member of the LLC is not an individual, the LLC income and expenses are reported on the owner/member's tax return.If you do not wish to accept the default classification of disregarded entity, you can:File Form 8832 (Entity Classification Election) to elect corporate status, orFile Form 2553 (Election by a Small Business Corporation) to elect S corporation status.Single-member LLCs may not file a partnership return.Also you did not truly engage in sharing on the points I posted. .....

The problem is, if you're a lowly sponsor without much money, you might have to live off of your crappy pro-rata cash flow for years before your partnership sells off properties and you're rewarded with a huge windfall. 

Is that enough active contribution for the partnership to be considered a JV as opposed to a securities offering?

Lets call that the :( side.2) And there is the happy side... passive income (syndications, passive partnerships ie medical/dentist offices) and passive losses (depreciation, bonus depreciation via cost segregations common in syndications).

And, it should - there's no functional difference between a dwelling unit and companion unit in City of SD. 

Our front yard was purely dirt so we put down gravel and transformed the front yard into a functional area for our tenants.