In other words, of each of the flip opportunities, not concerning partnerships, what was the buy plus rehab vs the sold price?

For example being a landlord does not necessarily involved work every day such as what you do at a 9-5 job.One of the reasons capital losses are limited to the amount you can deduct is because those are a specific type of passive loss.Passive losses from business activities such as real estate investments or investments in partnerships or corporations can be limited based upon the the amount invested, your income level and your participation.

How about if there is a partnership with the SDIRA.

I've done partnerships, and they can be troublesome.

Make sure you have a written operating agreement in place that addresses the specifics of your partnership (length of partnership, profit sharing, start up capital, terminating the partnership, etc).

I'm not really sure what benefit he is offering you at this point but it seems like you're limiting yourself in several ways by continuing your partnership with him.Mentors can be very helpful, but by no means are they necessary.

I know there have been a lot of posts on the forums about partnerships.

I just started a partnership for a house flipping business with a friend of mine.

You will need an accountant to do the partnership's taxes, so do it now.

Again, investing with your money is fine, buying a note, if you're in a partnership that can change the flavor and become a brokerage situation.Thing about buying illegally is that you could put yourself in a situation where you could not enforce the terms of the loan if the debt was acquired in violation of law.I suggest you talk to an attorney, you'll want to know that the debt was initially made in compliance.