The Howey test is used for franchise agreements, partnership interests, pension plans, and bank instruments...mostly.The form of the agreement and what parties call it is irrelevant, courts and regulators will look at the substance of the contract.For notes, the Supreme Court created the "family resemblance test" under Reves.

If it still boils down to NNN lease just via different language, then the IRS will look at the substance of the transaction and rule that NNN is NNN no matter what you call it. 

toothpaste spit all over the bathroom faucets, and some sort of substance -- guessing food smeared all over the bathroom counter.

Donald Cressey is The Fraud Triangle: 1- A perceived unshareable financial need. 2- Perceived opportunity. 3- Rationalization.Financial pressures change in life, medical care for aging parents, a family member becomes ill, college costs, mid-life crisis, substance addictions and gambling, jealousy/feeling "owed" or wronged, social pressures to "get ahead"...The biggest losses are always where there are no checks & balances, no separation of duties, no policies and procedures in place. 

In the end, this means you are not actually "spending " you money...you are "using" your money, as many times as you want/can.Second, the success of this strategy as @Brent Coombs has touched on, is very much Market based (as in dependant on the RE Market you are investing in) since it involves getting properties at a discount.Third, it works best when you are using all cash, or a cash-like substance.  

I knew I was gambling when I mentioned money but I've seen plenty of posts asking for advice and only receiving welcoming messages with no substance so I wanted to get some response, even if it was just fishing. 

Lots of words...no substance...Let's make this easy...Point me to ONE legal case where a wholesaler was penalized specifically for buying a property for cash and turning around and reselling it at a higher price to another investor (without committing any other violations, like fraud or brokering without a license).If you can't provide even a single example, I think it's safe to say -- STATISTICALLY, not just my opinion -- that this doesn't need to be a serious concern for wholesalers.Until then, it's just opinion without any substantiation...

Spending cash is the ideal way to do this, however, if the loan you got wasn't tied to the property...as in non-lienable debt, it is what I refer to as a "cash like substance".  

You just need a reference to a county where they have done business, then check their recorded documents to verify that their talk has some substance. 

In a downtown area, however its a depressed area with high substance abuse in the city.