Read a book called Loopholes of Real Estate.

The people that usually do well with this method do it after they been in quite a few standard investment transactions because they are not using it as a loophole in the barrier to entry in this business. 

The lynch pin that makes the STR loophole work is only needing 500 hours material participation (or 100 hours and more hours than anyone else) instead of full on REPS, as long as your average stay is less than seven days.

I haven't had to foreclose since I understand the "loop holes " and psychology of borrowers.

@Bill Nolan No personal experience but I just finished listening to Loopholes of Real Estate by Garrett Sutton and the author had some good info on the subject.

Get the book Real estate loopholes by Diane Kennedy, Garrett Sutton, and Robert Kiyosaki or listen to the audiobook via youtube there is a section on 1031's but i don't think you will get a detailed enough answer on a short yet complex undefined question here

There could be a loophole created by your friend doing it, and then if your tenant knows how the game is played, or they hire a lawyer, they could get the notice thrown out, and the clock would start all over again.

Even though as a wholesaler you still technically represent the seller and buyer, the contract assignment loophole seems to exempt you from the necessity of the license.I'm still learning myself but I hope this helps!

Found a loophole!

Interesting summary, thanks for sharing.I see there are quite a few loop holes, which creative investors no doubt will exploit.