Steve - Up front disclaimer: all septic system issues are site condition and regulatory jurisdiction specific and I have very little information to go on - that being stated ...

Second side note-when it comes to STRs you have to know if your city/county/state/ whatever regulatory body will allow you to have a permit with ownership being in an LLC. 

It was under the regulatory limit so it didn't require the full permit process but it followed the same protocol.Numbers are as follows.Purchase Price $450,000Hard money costs $16,000Holding costs 2.5 months $10,000Repair costs $21,000Lot split (survey and attorney) $5,000Real Estate Commission on Sale @ 6% of sale price $42,000*Sale Prices ($350,000, and $345,000) = $695,000Profit before taxes = $151,000. 

Id.Subsection (a) allows the Secretary of the Illinois Department of Financial and ProfessionalRegulation to petition for an order enjoining the violation or for an order enforcing compliancewith the Act. 225 ILCS 454/20-21(a).The Illinois Department of Financial and Professional Regulation has regulatory oversightover the practice of real estate brokerage.

Walmart and even the used car industry has stricter regulatory and moral guidelines than many in the Wholesaling industry possess.  

That said, when you claim to be in the business of dealing in real or personal property, then you are exposed to regulatory requirements as a dealer.

One of the major overhauls of Dodd-Frank includes to consolidation of regulatory authority between various federal and state agencies, sets up defined areas of responsibility for agencies dealing in areas of consumer protection, not just real estate financing but related financial transactions.

Ok, yes that's a bit cheeky but seriously, your talking about some very important, regulatory/law stuff, if your not willing to do the most simple basic actions of simply googling the laws, and reading through the statutes, I am sorry but than my time and effort has not been earned to help guide. 

Like I said this was more common prior to stricter enforcement came into play after 2007-2010, and your article is from the time period directly after that when regulatory bodies started cracking down on it.