As a landlord, you are representing yourself to the public as a business. 

Similarly, looking up deeds of trust, licenses, or other public loan documents, as is often recommended here, will only confirm that the company exists - not that you are speaking to a legitimate representative.

One big one is that scaling the lease option sale to a homeowner will attract both public regulatory scrutiny and private litigation, perhaps class action, once it reaches a certain threshold.  

On paper we were slightly in the red but much of that is due to one-year expenses/repairs & allowable transportation costs to get up to the property for work days ourselves. 

And if there is a significant public purpose (doubtful) what would the new law do, require an immediate foreclosure?

Now Wyoming is interesting as it is a state that allows you to hide partners of an llc from the public. 

High net worth LPs don't really like to reveal themselves on public forums.

When you think about it, only the flipper will know the expenses (not generally public record) so analysts or data aggregators can only go off publically available data.

Laundromats are open to the public, and if the local neighborhood has a high crime rate and transient population, those can be potentially expensive problems that can affect your business.

Even if the sponsor lacking knowledge and experience can raise capital through syndication, their life will become a living nightmare of lawsuits, hostile social media posts, public ridicule, accusations, legal threats.