Material participation (there are 7 tests you can use). 

@Jacob Maes There are many syndications that allow non-accredited investors to participate. 

I thought the County could foreclose the way I used to as a GC, but he said no, they cannot.So I am compiling an email list of all interested neighbors and will get started with organizing a group, we'll see who is interested in participating.

If you actively participate in the rental real estate and meet certain criteria, you may be able to deduct up to $25,000 of passive losses against non-passive income, subject to income limitations.

I don't believe an attorney will actively participate in a process that knowingly violates a loan. 

It would be better if they contributed more money and they were an active participant in the deal with you.

You maybe able to do a cost seg(needs to be done by a professional) and get bonus deprecation BUT you maybe not able to use it since you would need to be real estate pro or materially participating via the short term rental loophole to do so against your active income.

Positive Community Impact:By participating in the CityFHEPS program, you contribute to addressing the critical issue of affordable housing in New York City.

However, if you are qualifying for material participation then you have the ability to take those losses and offset your active W-2 income; which is probably what you heard in the podcast.

Lawyers participate in the real estate sale process as a matter of custom and practice.