This is the only route you can take to a legitimate business.

Partnering with an experienced investor can enable a less experienced investor to take advantage of features that they otherwise would not qualify for.

Without much effort, I've verbally raised quite a bit of money to fund some more projects.With more people getting involved, I am wondering the precautions and things I should be doing to make this more legitimate and be able to potentially present this to larger investors down the road for bigger project in the future.

I only bought to sell for a profit, eventually enabling me to buy nicer properties closer to home.

I'm assuming the spouse is required to work for a legitimate business and receive either W2 or 1099 from that business, but is this the easiest route to take? 

Knowing that contractors cheat the IRS and that many investors enable it is helpful?

The only insurance any legitimate private lender will ask you to buy is a lender's title policy and fire/hazard insurance (or landlord ins., or homeowner ins., etc., as appropriate).

INNAGO is a free tool that enables you to screen applicants, set up monthly payments, and manage everything in between.It's advisable to adhere to your lease terms and maintain a record of any notices exchanged between you and your tenant.Wishing you the best of luck.

I have a few questions: 1- Is this a legitimate way to set up a business?

I've noticed that legitimate investors do not have a problem with showing me a POF.