A 2x4 might cost the same in Washington as it does in Memphis, but labor and regulatory conditions are site specific.

I bet you anything this will vary greatly by state as well as which regulatory agency a lender falls under. 

You can do it, but you need to be a problem solver have some thick skin, in many cases.Also, in some cases your hands may be tied from a regulatory perspective. 

That will enable you to learn to deal with all of the utilities, architects, regulatory folks, and develop a relationship with a builder without betting the farm on a single project. 

Such would be asking the bank for the determination as regulatory authorities don't address inquiries directly with the public.

Comply With Other Tax and Regulatory RequirementsAdditional tax and regulatory requirements may apply to your LLC.

And in case you're wondering why other companies cannot all do what Prosper or Lending Club do - it is because the filing and regulatory fees to do it are enormous and much more money than many of the new crowdfunding companies can afford right now.

Not great for building a real portfolio around with all the regulatory risk.Can you share any more info about the hotels Airbnb is building?

However convincing a judge or regulatory panel later that it is not an unlicensed business may be more challenging.Disclaimer: I am not a lawyer and not offering legal advice.

If they get involved it is independently suing for nuisance or some regulatory violations.