After reading up on the opportunities in fractional real estate investing, my curiosity is piqued!

I would not suggest a written only warning for a minor infraction.

Print out an explanation of the infraction, the circumstances, and what steps were taken to resolve the matter in case someone asks about it.

Secondly, it is very common for me to receive push back and fingerpointing when I talk to property owner about an infraction.

It varies by state and what document was signed.The real estate commission oversees license law infractions and I do not see anything here approaching that.

Although commingling of trust account money is the NUMBER 1 infraction in the industry.. you see it when we get our RE bulletins and they list those that got suspended or revoked or what have you commingling is always number one.  

Also its naive to think you are going to provide a home that a professional tenant or lawyer couldn't find in some sort of violation, it is like the cop following you around in your car, they are going to find a myriad of driving infractions, if they look hard enough.  

@Ken CooperAssuming that this is all the information you have to go on and the fact that 1) you have to rely on a property manager for decisions and 2) the arrest is probably a minor infraction and they are not convicted; I would simply protect your self by using a fair security deposit and move forward.

Some of the items/infractions described are attributable to wear and tear and would not be admissible in court.Additionally, there is no proof that the crack in the refrigerator drawer cover didn't exist before you or ex-tenant were made aware of it prior to the cleaner's discovery.So, the bottom line is that you are riding a slippery slope and may want to come to some amicable agreement with the ex-tenant before it escalates.

Thoughts on getting involved in a fractional Interest-only Notes, with low LTV. I've handled funding loans all by myself but might need to start participating with other lenders/investors. Are there in any pitfalls in...