But that is a bit far off and still needs to go through the regulatory process.

., as Real Estate Owned, sometimes referred to as Other Real Estate Owned, or just REO, on their quarterly "Call Report" that is filed with the FDIC and their applicable regulatory agencies. 

As twenty-somethings and no experience in real estate, we didn't know what to do with the information we found and $300K price tags (even for 10,000 sf) were out of our league.I don't know the Bronx that well, but have to imagine that there are still great opportunities there.In terms of the regulatory environment, I'd be interested in resources for what the lay of the land is like to convert SFR's into Multi's (legally or otherwise).Interested to hear developments.

I think the type of transactions you listed, "...owner financing, wrap arounds, lease options, take over debt subject-to's..." are all 1) not typical transactions 2) create risk for the attorney (regulatory compliance risk), 3) may not be part of their closing practice, and 4) (not sure about this) may not be covered by Lawyers Professional Liability policy.

The reason so many in RE are so limited in the scope of their business activities comes from the lack of knowledge of the basics, legal aspects of contracting, valuation, financing, title issues, regulatory matters and market analysis.

Some state regulatory laws require that it is done this way as well.

@Karen Warren HMLs don't follow the Frank Dodd conventional disclosure and regulatory requirements, and therefore are prohibited from lending on an individual's primary residence.

But to call it tax evasion is false and reckless and exposes a lack of understanding of the specific statutes and subsequent decades of case law in sec 1031, Rev procedure 2000-37 (the safe harbor reverse exchange), rev procedure 2002-22 (Tenants in Common syndications), Rev procedure 2004-33 and 86 (Delaware statutory trust), and all of the various regulatory guidances we have for using 1031 exchanges in conjunction with personal property, vacation property, primary residences, retirement, and estate planning etc.The 1031 has for many decades been the  method of deferring tax on the sale of investment real estate. 

It all sounds so easy until you start looking at the regulatory environment you are wanting to be a part of as a fund, to save the pittance of money you think you will save (by not using lenders that have been in this business for decades.)  

This is not why wholesalers don't want a license, it's because they would have to answer to regulatory agencies when they screw someone over.