So, the way to be more like them and obtain tax code benefits is to use the tax code the way it was intended.Also, if you're using LLCs outside of a business entity structure, you're doing it wrong and you will leave yourself open to being considered as having disregarded "the corporate veil" which will leave you open to attack from shysters and thieves ... er, prosecuting attorneys and plaintiffs.Your tax accountant and tax attorney can provide guidance on this, @Ralph E.

So, with your subordinate interest you may have placed a tenant in a property keeping another lien holder from securing their collateral, doing so intentionally, to profit.....it's starting to have an odor about it now, I can see some prosecuter looking up things like lien fraud, bank fraud, establishing false liens and on and on to impeading operations of a federally insured depository....I don't know, just sounds like things they might try to stick you with if for no other reason acting unethically toward other creditors.I'm not sure why so many people think that all one has to do is give others notices and disclosures about what they are doing an it absolves them of ethical responsibility or shields them from violations of law, just not so.....in many cases.Interesting thought of taking possession of a property with a very limited interest in it, passing it off allowing others to live in it, blocking other creditors from taking possession for awhile and betting on when the tenant will have to leave.....interesting that someone would think of it....lol...

I have been licensed, certified, sued and prosecuted.

You also won't have to worry about getting prosecuted or sued.But if you make your living screwing sellers out of their equity by unlicensed wholesaling, the first thing you sacrifice is your ethics and your conscience won't be far behind.Start by searching on [your state] Association of Realtors and see what classes are required.

The problem is that no one will prosecute them for the offense, so the whole thing is a farce.

Their view and what they prosecute people for is that you cannot be in the business of assigning contracts without a license. 

The mortgages were not paid and went into foreclosure, resulting in losses of over $3 million since the lenders were only able to recover a fraction of the outstanding mortgage balances when they sold the properties after foreclosure.This prosecution was brought by the Mortgage Fraud Task Force, made up of investigators from the Federal Bureau of Investigation; the United States Secret Service; the United States Postal Inspection Service; the Department of Housing and Urban Development, Office of Inspector General; and the Lansing Police Department.

It's okay that you likely didn't know that, but I don't recommend your prosecute your doomed case any further. 

then they invite all the departments to the one hour meeting and each one talks about viability of the project and gives you the hurdles you will need to jump to get the project approved.also financing can be non existent for someone with no experience.. so you may have to use cash to prosecute the subdivision.

Not for damages but my sister was asked to assist in criminal prosecution of her tenant for passing bad checks.