@Jack Orthman I think there just may be a misunderstanding in terminology in your situation.

@Ben NelsonJust for further info to everybody....most of these guys will state it was either a misunderstanding or it was a “I was 18 and she was 16” kind of lie.

Am I misunderstanding what they are telling me? 

Or am I misunderstanding something?

Your response indicates a colossal misunderstanding of what a fiduciary is. 

We out source that.We have to fully explain the whole process so there are no misunderstandings going forward.The insurance has to be just right and in place at closing. 

The key lies in finding a true professional that goes above and beyond.Some of your complaints require explanation and some are simply based on your misunderstanding of what a property manager does.

This might be a little long winded, but here's what's going on and what you need to watch for to stay compliant and legal.Please don't misunderstand what I'm saying below.

For example, Jan - A1, A2 - purchased these two houses the first monthFeb - B1, B2 - purchased / A1, A2 rehabMar - C1, C2 - purchased / B1, B2 rehab / A1, A2 ready to rentApr - D1, D2 - purchased / C1, C1 rehab / B1, B2 in rehab / A1, A2 rentedMay - E1, E2 - purchased / D1, D2 rehab / C1, C2 in rehab / B1, B2 rented / A1, A2 refi done, "seasoning lockup / countdown" beginsJun - F1, F2 - purchased / E1, E2 rehab / D1, D2 in rehab / C1, C2 rented / B1, B2 refi done / A1, A2 cash flow, wait for countdown to expireJul ===> ad infinitum ... repeat, using the "unlocked" money from prior generations to fund future deals.Then again, I could be totally misunderstanding what he said. :) lol

This violates basic supply/demand and common sense.This apparently common view people have of the area seems to be overly influenced by media headlines, misunderstanding basic economics, and not understanding more complex economics that actually drives investment demand.