By the end of program they own a part of a building in their own community in which their profits go toward their college education.

Can you find someone to loan you the money and split profit with?

you DONT pay tax's when you borrow money.. you pay tax's when you sell  ( that is if you make a profit)

PM is a high volume low profit product to go along with but/sell brokerage services.

You have to have a really great deal to find something in a good neighborhood and then you make a profit, your subs, the PM, the placement, etc... 

That would eat into your profits.

I took my profits and used it to open a business.

Again, offering some dollar amount to make it ok, might get you some cash in hand and head off an issue.I wish you big profits!  

Harsh Singh Short answer is that the 50% rule should cover everything but debt service and profit.

@Basit Siddiqi, thank you for your response.Just to be clear, out of the 40K recognized as profits to the LLC, I can deduct all closing costs thus reducing the tax burden to me when it moves as ordinary income to my return?