You can generally deduct your business expenses not paid by the borrower.If you’re running a lending business, no matter how small, like any other business, you can deduct all reasonable and customary expenses.

So you have financial outfits getting involved in businesses that had long been left to small owners or specialized funds.

To increase the effort others put into building my business I offer a 1,000 referral fee to anyone who tells me about an unlisted property that I buy.

But an amazing business model. 

A business does not base their business plan on possible RE appreciation and sale of that building.

You might also meet someone that could be a potential business partner.

Talk to real estate professionals for guidance in navigating the market.

You'd want to report this activity on Sch C instead since it's a different type of business activity.

My only concern is what if they close shop or sell their business?

Collaborating with legal and tax experts is essential in order to effectively navigate the complexities of forming an entity and ensure that your real estate investments are structured properly for your specific circumstances.Good luck!