Thats why you see very few HML that were in business prior to 2010 to 2011..

If you are raising capital from people you don’t have a prior relationship with, and even people who you do, they would regard you as serious only if you had a professional prepared PPM and Operating Agreement.

Politely and clearly, make it extra clear that all information will be verified including income prior to the signing of any lease.  

Spoke with the seller a few month prior to contracting.

You are afraid of rent control, but if you add an ADU and it is detached, the main house (if built prior to 1978) may eventually become subject to LA Rent Control. 3.

As I stated above, please exercise caution and make sure fully executed documents are received prior to wiring funds.

I did work for a commercial real estate investor prior to jumping into syndication, so that gave me a strong knowledge base to start with.

Quote from @Jay Hinrichs: Oregon finally passed legislation to reel in unlicensed wholesaling its in this months publication from the state RE agency.Highlights:Goes into effect  July 1 2025Requires:On line application to become a licensed wholesaler  ( RE agents exempt from this of course they already have licenses)Name of company and individuals who will be performing these services.Each one needs a full criminal background check and approval prior to receiving the license.300.00 annual fee for the license.Written Disclosures in Bold 10 point.These must be given to Buyer and Sellers prior to entering into a wholesale contract and signed for.Also RE brokers assisting wholesalers need to give these to potential buyers and sellers.

Prior to last year, effectively any SFR was eligible for a short term rental license.

Despite the house being operated for years by the prior owner as a STR.