The laws are still evolving, so it's helpful to have a co-host that will keep up with the latest regulations, keep you in compliance, and help you to pivot your rental offerings as needed. 

They have their own rules and might take a share of your profits instead of charging interest.Hard Money Lenders:Nowadays, hard money loans usually come from bigger companies and are more regulated, making them similar to loans from Private Money Lending companies.

The problem I guess we have is figuring out regulation.

We have the opportunity to purchase a beautiful, well established STR in an up and coming market.

Hopefully something can be done depending on city regulations.

We've spoken several times with an attorney who specializes in this area of law, and he's assured us that our flat-fee investment club model is well established in the law and that we're not selling securities.

Usually a thorough exploitation of depreciation with cost segregation, partial dispositions, various exceptions in Tangible Property Regulations etc.

Outside of potential lenders, I could also see it being used with potential partners and possibly sellers to establish credibility. 

Be very careful of these fake on line lenders.. its a huge scam these days.. while 100% exists in the market place its only for well established long term repeat clients.

I would prefer to go with a established company (rather than an individual hustling on the side) with streamlined processes, transparent online accounting, and a long and strong track record.