Wanna be gurus, usually salespeople with little real estate investing experience, “audition” with the seminar companies akin to a screen test” in Hollywood.  

This is better in some ways, as I have the backups in the event of an audit and don't have to rely on my software vendor to still exist in 7 years. 

While you may get a 199A deduction, you are paying a high tax rate.If we are talking about REIT's listed on an exchange, there are additional overhead costs as you mentioned - You have to get audited financial statements and also comply with certain SEC laws.

My accountant says it's hard to do and an easy audit.

Private placements have no investor protections, audits, and public disclosures...they are the wild west of investing. 

It sounds like I'm begging for an audit lol.

We don't do an 80/20 or 70/30 rule as it doesn't give you any ground to stand on if ever audited. 

Some form of contract or option agreement that I was looking for specifics on that would pass muster with audit or legal around the property being a temporary asset. 

Unfortunately, that won't really fly in the event of an audit. 

Its up to you, you could challenge it, 99% of Accountants want to avoid any chance of an audit.