He goes, 30, 60, 90 days and on the 91st day, Darrell files a Lis Pendens (lawsuit pending).

If a physical address is ever needed, you can use a UPS store or equivalent.Use liability insurance as the first line of lawsuit defense.

Based on your situation, not collecting rents, using it as an in-law suite, you likely can take up to 500k profit without the 1031 exchange.

See http://massrealestatenews.com/short-sale-lawsuits-will-realtors-be-next/I believe Realtors that have poor training in Short Sales that misrepresent their knowledge and experience should be criminally prosecuted.What do BPers think?

For single-purchase raises for a specific asset it seem that best from the perspective of the promoter would be defined as:Least transaction costs and friction for presenting deal to investorsBroadest possible audienceLowest cost of capitalAdequate protection from lawsuits or legal risk both at the time of subscription and on a go-forward basisHighest likelihood of finding or maintaining relationships with investors for the longest period of time possible The motivation for a blind pool would be largely the same, but one would place more emphasis on the ability to forge long-lasting relationships with investors so they'll continue to invest in future placements or deals in general.

Even that may be tough without a partition lawsuit.

That should mitigate the lawsuit risk considerably

Plus, every one of his properties is in his name which makes him one lawsuit away from losing everything.

The deed transfer date would end up being listed as before the deed/contract restriction expired (despite holding off on recording), and you'd be opening yourself up to a lawsuit from the lender.

When you start clouding people's title and taking people to court you open the door for people to file lawsuits against you, file Cease and desist orders against you, report you to the better business bureau etc, etc.