1. Bernie, who has been a real estate developer his entire adult life, has put together many investment opportunities for his friends and family. Sometimes he invests his own money and other times just his energy and expertise. While driving around in an up-and-coming part of town last week, Bernie spotted a large lot for sale in a great neighborhood. So, he quickly obtained an option to purchase the lot, which expires in six months. Bernie is now contacting many old friends and former business associates, trying to gauge their level of interest in investing into a mixed-use development that he is sure will thrive in that location. He knows it will take a lot of work and perhaps $5 million in capital, which he is sure he can raise without having to tap into his own money. In basic terms, describe how Bernie might structure a deal that would allow him to participate in the success of this venture and also allow him to get tax-favored treatment for his efforts if it is indeed successful.