S-K, S-11, audited financials, etc.) and this regulatory "baggage" is non-trivial.

I'm shocked that this third rate company has not been shut down by NAR or the any of the other regulatory agencies.

Irrespective of whether it is a cash transaction or financed, in order to close, the money generally has to be in "good funds" as described by state law or the regulatory agency that oversees title companies in your state.

and requires principal intervention via MM inventory to achieve regulatory requiremets for market stabilization, etc.

Banks are definitely selling commercial loan notes left and right to private investors, even sometimes in cases where the notes ARE PERFORMING, if the bank has a need (reducing required regulatory capital, regulatory pressure, Board mandates, etc.) to divest themselves of a particular asset class.

I know the high level but not enough to know where the regulatory pitfalls are.

Each bank has different cut offs besides the regulatory requirements for any large cash transaction report so don't even be concerned as it will match up from one depository to another.I'd keep him as a lender instead of getting involved in profit sharing and interest earnings, but what ever you need to do to make him happy.If you do share profits that opens the door to being responsible for the operations and profits and more partnesrhips fail as one partner sees themselves doing most of the work and having to pay for very little contribution by the other.

An IRA custodian would most likely go out of business for regulatory issues, not lack of capital/profits.

At the same time Dodd-Frank created the new super agency, the CFPB, it also jerked all lenders into a whirlpool of new rules and regulations so confusing that many regulatory agencies are having trouble keeping up.

. […]Finally, we examine whether some factor such as the existence of another regulatory scheme significantly reduces the risk of the instrument, thereby rendering application of the Securities Acts unnecessary.