.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

Do not bank on setting a new neighborhood record on $ / sqft - be conservative in your numbers.I am looking at 5 E Freeman st Newnan Ga We are going to do a 4/3 the price is 140k with rehab budget 57k ARV 285-300. 

It fills out your Schedule E to send off to your CPA every year!

@Angelo CortezYou can still deduct, however STRs are reported on Schedule E, not Schedule C.The IRS expects you to file 1099s even without SSNs - which I personally always found to be puzzling.

But these two live and work it and dont sell e ducation.

Its a scare tactic and she is trying to bully you into letting her get away with this BS.You need to screen WAY better and/or hir e PM for future tenants. 

And if someone clicks to schedule a showing it has a form to capture there information that goes into a crm that then starts a "prospect tenant" followup campaign including response text instantly to interrupt there search knowing we got there request and check there e-mail where we send followup information, links, directions etc etc. 

The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.  

If you are sole member LLC you just take a distribution from your business account to your personal account.You are likely already reporting the income on a schedule E.

I spoke with Daniel E who seemed like a nice guy but as I learned more he told me there was a $1200 yearly fee to be a member.