You can't live in a because you'll be breaking zoning regulations.

With Dodd-frank I would think would be very regulated and restricted but then again I see note investors buying performing and non performing notes and modifying themIs there a difference between creating a note and modifying an existing, especially when you are not the current owner and selling / transferring the property ?

Look at the zoning regulations and how it relates to parking requirements and new development taxes for new construction in light of what new construction demands in rent levels verses renovation.  

Since the applicable laws are state specific, I recommend you invest in getting the legal opinion and advice of a well informed attorney with an in-depth knowledge of the laws, rules and regulations promulgated by the state real estate commission before commencing your wholesaling business model.

What you can do will depend some on your state regulations.

Perhaps the quickest answer to that question is - through your website.The regulators do not have to be in Rolla, Missouri to view your website.

I'm wanting to know how to decipher between what is government regulation and what is bank policy? 

Does this scenario qualify under the exchange regulations?

Any number of things can be buried in the county sub-division regulations and all of them have the potential to reduce the number and size of lots you want to create. 

@Gene Quiocho check out this thread https://www.biggerpockets.com/forums/93/topics/348190-wholesaling-assignment-contract-question