The situation you have described above does not involve either securities or people with no prior relationship.

@Jessie York BRRRR is just a cute term used to describe the strategy real estate investors have been using forever.

From what you are describing we are looking looking at a structure where the owner is selling shares of the entity that owns the property in exchange for equity from an investor that will expect a return on his/her investment while being passive.

@Justin Turner You are describing a general partnership, unless you are married.

@Jay Garrison from what you just described, I would say you desperately need an experienced agent.

*Note: I'm a net-worth investor myself, along the lines of what you're describing. 

@James Free You did a great job describing the Fundamental Attribution Error; it's one of the more common cognitive biases. 

(Again almost certainly as described, but we are interpreting over the internet so I am adding this consideration).If this is as described, I think it may be worth considering pursuing this to the fullest extent of the law both criminally and civilly (civil side with a good attorney on contingency). 

@Caleb Heimsoth  its virtually illegal in all 50 states to advertise a home you do not own for resale and describe the home its features etc.what does or does not happen is enforcement.. the law reads virtually the same in every state.. 

That gets old quick.I would explore TIC with % listed and  a JV agreement that outlines the excellent post of @Jerry W that describes the potential pitfalls of the ship that often won't sail, I mean partnership.