My understanding is that there are no tax liabilities in these investments and that is why they love buying notes using these types of funds.

You are if you carry $10M in liability insurance.

Who wants another high maitneance liability?

Tell her you don't accept post/pre dated checks due to liability......that is if you can't do a small favor for an obviously trusting tenant.

More often the entity discussion is focused around asset and liability protection, but it seems as though you have a different desire here though that may be part of it as well.

Legally, a salesperson represents the broker in any deals the salesperson is involved with and the broker has primary responsibility and liability.

If you don't take action to protect your property and strive to keep it safe and free of illegal activity, you will be opening yourself up to a different kind of risk - liability.

We can take the same line of reasoning when Analyzing other Risk Hazards such as loss of income; loss of property ; (house loses entire value) ; In addition , I think we need to look at other non cash returns when considering leveraging versus non leveraging, as some of Leveraging benefits don’t show up on the cash flow line Total return Calculate total return for scenario sake – assume 25% tax bracket and 5% appreciation Option 1 Cash 2250 Month * 12 months 27K a year 27K / 300 K = 9% ConC return (as stated) Other returns Equity build up = $0 (already %100) Tax savings (assume 40 K tax basis , 27.5 year amortization ) $1450 per year DEPR allowance * 6 houses = $8700 $8700 DA * .25 (tax rate) = $2175 Appreciation Appreciation 5% = 50,000* .05 = $2500 year appreciation 2500 * 6 (houses) = $ 15000 Total return = Cash + equity + Taxsavings + Appr = 27000+0+2175+15000 = $44175 4175/300000 = 14.71 total return Ending Equity => Value – Liability = ($300K *1.05) – (0) = $315K Option 2 Cash 2880 Month * 12 months = $ 34,560 a year 34.45K / 300 K = 11.52% CoC return (as stated) Other returns Equity build up Using financing model above (25K financed at 5% over 30 years ) – yields $360 equity build up in year 1 $360*12 houses = $4320 Equity build up Tax savings (assume 40 K tax basis , 27.5 year amortization ) $1450 per year DEPR allowance * 12 houses = $17400 $17400 DA * .25 (tax rate) = $4350 Appreciation Appreciation 5% = 50,000* .05 = $2500 year appreciation 2500 * 12 (houses) = $ 30000 Total return = Cash + equity+Taxsavings+ Appr = 34,560 + 4320 + 4350 + 30000 = $73,320 73,320/300000 = 24.41 total return Therefore you get more sizeable return on your money for assuming the probability of more risk, even if the impact is lessened

This does not remove the liability of the tenant to surrender the property in proper condition.

Check that they have a snow specific policy and not just general liability.