Mess up in your business, only business assets are generally at risk, I say generally because you could act with malice or perhaps gross negligence or unlawfully, let's say a fraudulent act, ill gotten gains can be traced to where ever they may lie....look at Madoff!

Don't trust certified funds either.When I get my commission checks from a closing attorney or receive a cashiers check my bank waits a few days for it to clear.They have seen fraudulent cashiers checks and have seen social security checks even bounce before from the government.For cash have a pen checker for counter fit bills.It's wild in today's times for sure.

An entrepreneur from California who was under indictment by the Feds for fraudulent real estate schemes purchased a very large tract of land in Charlotte and began building townhouses.

I noticed you are in California.Many investors are not purchasing there that live there.They are looking at Florida,Georgia,etc. where you can buy multiple properties cheap that cash flow well.California tends to be more of a speculative market where the markets can swing wildly and many take a gamble on appreciation.You just need to define what you want your plan to be.About what range do you have to put down??

investment in the stock market which is akin to gambling IMHO, buying a business which comes with its own set of issues...or real estate...and of course...working for someone else...i have a finance background...tried the stock market..got burnt...looked at many businesses/franchises to buy...nothing made the cut....plus it was overwhelming to buy a business...i also have a full time job in San Fran for a large large company and i hate the thought of going to work.. and now tht i have my properties i deal with one property manager...who deals with tenants etc...i love the independence and cannot wait for a few years before i can afford to quit my job...i think it is the prospect of being financially free that gives me an added rush...

I know that I would be scrambling to find all the evidence I could find for any gambling losses that I had.

Putting your hard earned money into something that you don't completely understand is gambling and definitely a recipe for disaster.

Don't gamble with what you can't lose.

What if the investor bought a fraudulent note?

My understanding was that you have personal liability if you acted in a negligent or fraudulent manner with respect to your rental property.