@Dominique Mickles Regardless of the List price ($40k), if the agreed upon sale price is $20k, and you have $20k sitting at home in a Tupperware container, There is a regulatory requirement that says if the asset purchased is more than $10k and someone pays using actual cash bills on the asset and not some form of electronic payment leaving a paper trail, it must be reported to the Financial Crimes Enforcement Network (FinCen). 

I'd request the two most recent paystubs to get an idea of employment status; if they're 1099, usually a self-employed person could have multiple 1099s, so I'd inquire about those.Just pay super close attention to your local market's regulatory standards to make sure you're not breaking any laws (ie.

There are some regulatory things you have to follow. 

SEC or state securities regulatory side and potential lawsuits side, you will need an experienced securities attorney to create the following documents1.

https://www.richardhornsby.com/crimes/regulatory/u...Note there is no exception for "equitable interest".

Or you want to skirt the Airbnb laws and get some nice short-term rental money but without regulatory certainty, you're always at risk.What about looking in Colorado Springs?

Anthony, the reason I mentioned those good points is because you were pointing out misconceptions about the L/O, more reading on the topic on BP and in regulatory matters will be enlightening.

Yes, not all seminars are guru stuff, ideas can be exchanged, staying current with regulatory and legal matters is a must in RE.

I'll need to catch up with this topic, now that it seems to have some steam behind it at a regulatory level.Any time the barrier to entry is low the fraud aspects will go up.

Howey which states the structure is:1. investment of money due to2. an expectation of profits arising from3. a common enterprise4. which depends solely on the efforts of a promoter or third partyIf you say yest to all four then it is a security and will trigger the need to register the investment with the Feds and possibly the State regulatory agency.Common ways to avoid the expensive process of registration is to structure an LLC with all members participating in management or a tenant in common ownership structure.The other way to enjoy the benefit of raising private money is to avail yourself of the exemption rules.