.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

I have $25 dollars (plus accumulated interest) in it.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

It involves analyzing the real estate cycle and identifying the right moment to buy and sell properties.

His bank was in a state like Indiana, while one of his companies is in Wyoming, and just all sorts of weird sketchy stuff that accumulated over the period working with him.

You can get eaten alive in the Baltimore market by people selling you Class D properties "dressed up" as Class B.

They operate like a credit card - when you are not using the money you don’t accumulate interest, when you are using the money you accumulate interest and need to make monthly payments.

You’ve developed a moderately fast wealth accumulation strategy that’s relatively low risk, enabling you to ride out down cycles, negative cash flows, unexpected necessary expenditures, etc.  

Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

Back wall adjoining neighbors are starting to accumulate junk up and piling up and over the fence.