How can a sponsor participate in annual cash flows or is all their upside back end loaded and contingent upon a capital event to get to hit the hurdle?

What is the difference between REPS hours and material participation hours?

I always feel these questions are rarely on the up and up, but here goes.Attorney response: it depends.Depends on desired target return, risk tolerance, active participation willing to make, etc. etc. etc.Fire and forget (forward all mail to Tahiti): Drop all $10M with 3-5 HML funds sprinkled around the USA at a solid 8.00% ROI.Work now/Play later #1: 2-3 ground-up multi-use facilities in central Texas (my back yard) paid for with mostly cash.

You've tried to be reasonable, but your tenant is not participating.

They do excellent educational  Zoom webinars - I participated in one today.

In reality, I think it is pretty clear that they had at least some knowledge of the scheme if not a high level of participation it.

I think one podcast participant even offered to show what his looked like.

We have a few "top tier" partners/sponsors that we will participate in most of their deals unless it strongly goes against our internal criteria and there's not a very good reason to justify it.

The only exception to using retirement funds in this manner would be taking a participant loan from a plan such as a Solo 401k and using those funds to purchase the home.

Good day, as a contractor who gets approached quite frequently to participate in these type of loans by my own clients, please take into consideration that you need to pay taxes on your return.