In your case you have a lot of losses in the time you own the property but these losses transfer through to your personal tax return, so you can recover some of it and not have to count the full nominal amount.

Heck, you gotta pay taxes on it too, and you also run the risk of the unforeseen and problems along the way with a rehab.Lets see, I paid my fees and got back on MLS last May, and signed up for Privy.

A MIC manages a portfolio of secure mortgages where individual investors pool their finances to create mortgage loans.

I purchased my first tax lien and need to get the property placed as abandoned so we can start foreclosure.

Now you have a brand new property that has no mortgage, rents for $2,000 a month with $300 a month in taxes, insurance ect…profit $1,700 a month.

Each LLC is multi member so they probably file taxes as a partnership. 

I have been looking for a home in Southern California... which I do not want to go the typical route because of competition and also my tax returns are not so friendly to conventional lenders.  

Had gotten ahead of myself but had been under the impression I was 100% secured on my hard money loan.

Ask them when they issue distributions (anything before the 15th of the month is a red flag), do they require reserves, how is maintenance charged, do you see copies of outside contractor bills, do they upcharge materials (PM's have LAR accounts with Lowes and often get 20% off), do they keep all late fees or just the management fee, what other fees do they charge (renewals, inspections, etc), where are tenant security deposits held, how are evictions handled and are you consulted before filing, what screenings do they run, what qualifications do they require from tenants, ask for a couple other owners to visit with for a reference. 

Not sure what new tax laws bring to the table.