This way we are compliant with CA usury laws and stay on the DRE/BRE's good side.

And they say they are compliant in all states, just name the state you need.In Mo. you can go to the Sec. of State web site and complete an LLC on line for 50 bucks I think it is, the form is free.To make an LLC operable or in complaince to do business you need an Operating Agreement, seems impossible to me to get that from an on line source or any guru unless you did business exactly like they suggest.

@Trevor MillerWelcome to BP.Your first stop (either virtually or physically) would be at the municipality to confirm whether the property is zoned such that building a duplex on the lot is possible and whether the lot dimensions are sufficient for two units.If you make it past that step, then you need to decide what kind of building you wish to construct and what you can afford to build:  i.e. minimum code compliant building; R2000 rated building; Passivhaus, etc.  

If a bank hires me to do a FNMA compliant report they don't want to opinionated comments.

On top of that they have the state looking at them to make sure they AND their agents are compliant.

Additionally new laws in Texas have made it much harder and more costly to "go after" non-compliant homeowners.

@Nathan Shepherd That is an interesting arrangement but I would double check to make sure that is compliant under Dodd Frank. 

Alternatively, you can buy from record owners (or their estates) prior yo sale, however you'll need to be compliant with CC1695 Equity Purchase Statutes if buying from owner occ 1-4 unit sellers prior to sale.Lots to learn and open up a whole new world to the developer.

Since real estate is a regulated industry, having someone selected as your instructor or mentor who lacks compliance knowledge can be disastrous if that instructor teaches non-compliant methods or aspects that lead to non-compliance.

These syndication deals are SEC compliant securities.