@Pavlos Kasselouris SEC regulations only come into play when you are dealing with securities (public or private).

That may or may not help, but it's extra security that's not too expensive.

@Paul PassafiumeInvesting a SEP IRA in promissory notes secured by real estate is a popular investment in the alternative investments world.

I can recount many times when I made that dash up to the bank to make payments.What it boils down to is....IF you don't want them coming to your house to deliver the rent, then you need to eliminate your address from the lease, and don't let them come to your house to deliver their application or security deposit either. 

.- More than half of the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated.- You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.Don’t count personal services you performed as an employee in real property trades or businesses unless you were a 5% owner of your employer.

Make sure if you're securing that with a 2nd mortgage, the 1st mortgage lender will allow it. 

And then a loan secured by the owner carry note.  

If the work is being performed during business hours there is no need to give any discount.

Then your property becomes neglected and a pain and you end up selling to someone who knows how to run a tighter ship and knows how to get your asset to perform properly.

If you had your own attorney handle it, then they should have insured that your loan is properly recorded, so not a lawyer, no legal advice, but I'd think that worst case, you'd need to foreclose and take the house back if he doesn't perform.