In this universe, which I classify as groups writing $5mm checks+ and allocating in the tens of millions per year, they do not follow sponsors for years.   

Texas division of banking (whatever they are called in that state) probably should have done something but appears they didn’tDHS actually is one of the departments that prosecuted criminal financial crimes - most think of them only as border patrol as their major function but they also investigate this type of activityhttps://www.dhs.gov/hsi/investigate/financial-crimeTime will tell if these cases ever go anywhere but for those involved probably just happy someone finally picked up a phone to atleast listen to IRS criminal is another good one to sic on them..

I didnt know that the HELOC thing was classified as debt acceleration, and I would like to understand that concept more.

However, only those classified as "real estate professionals" (REPs) benefit fully from these deductions, which are usually limited to those who spend more than 750 hours per year or half of their work time in real estate.

Whether you classify it as business or personal income depends on the nature of the lending activity.

You can't really convert it to a rental property and then do a renovation as you will have no cash flow as a rental so I am not sure if you are trying to classify it somehow, but I don't think that matters at all.

The Norada Capital promissory notes do offer a high rate of return (interest), but I would not classify them as "high risk" because of the higher interest rates.To correct your comment, they ARE backed by hard assets and collateral.

Classifieds? 

Additionally, it can help maximize renovations and improvements.20% of the total depreciable basis was classified as 5-year class life.

To classify all syndicatorNope you are very wrong , it is the other way around, I invested since 1990s.I primarily avoiding investing in 2005 era because MacDonald guy can buy half million house.