If the owner(s) recklessly borrowed and lost money, made business deals knowing the business couldn't pay the invoices, or otherwise acted recklessly or dishonestly, a court could find financial fraud was perpetrated and that the limited liability protection shouldn't apply.https://www.nolo.com/legal-encyclopedia/personal-liability-piercing-corporate-veil-33006.html

The one being dishonest here is you, not them.

The ways I have seen it done: where (a) wholesaler offers to buy via contract, then, (b) during the closing period actively markets the property for sale as his/her own, (c) at the closing assigns the contract to actual purchaser, takes his/her cut, and finally (d) title transfer is actually made to third party, is in violation of the Iowa real estate license requirements and, frankly, is very dishonest. 

As a pro you are expected to know better and you can get in more trouble for being dishonest and non disclosure.

But, if he does, obviously you'll never use that buyer again because he is dishonest.

Honestly I find him a little dishonest since you said the numbers don' t work as a 2. 

Our tenant just moved out four days ago, and while taking care of yard maintenance (that they were supposed to take care) I smelled the worst smell EVER! They had removed a small piece of under pinning to the mobile h...

Hi @Bob Starlin , 1) RE pros are much more often incompetent than dishonest, they don't abscond to another jurisdiction but they may waste vast amounts of money by not having proper contracts in place, not doing due diligence on a prospective tenant, not getting the best bids for repairs...

With that said, if you choose to invest in a syndication, here are a few points for you to consider when seeking a good syndicator:Character - In a syndication or fund, you are a passive investor with little control over the day-to-day decisions, so if the sponsor is dishonest everything else will not really matter.

In my opinion, they’re some of the most dishonest people in the Memphis market, we’re currently involved in a civil dispute with them for fraudulent actions/activity.