Thus, they take extreme risks and look for corresponding discounts.Additionally, after the first position lender accounts for default interest, penalties, legal fees, foreclosure fees, accounting fees, and everything else, the equity in your combined <65% ARV loan can easily erode to zero.

@Dean HalpinI’m not an attorney and can’t offer legal advice, but this situation seems to have the potential for a lawsuit for unpaid wages.

This is not tax or legal advice, just what I personally do, consult your professionals! 

The increased risk is generated by the fact that the owners are relying on the validity of the tenancy in common Agreement for their usage rights, and it is possible to imagine legal circumstances under which this validity might be undermined.- If the subdivider or someone with relationship to subdivider sells, a public report must be done.

I am too lazy to look it up, but pretty sure it is legal.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Honestly, I would not sign any lease until you positively close and legally own the property.

Perhaps if your partner was a general contractor or handyman type there may be some merit there to reduce costs / increase profitability.If your partner enjoys deal sourcing, a better move might be for him to become an agent - so he could legally collect commissions from finding deals and managing properties for multiple people. 

Hi Krista, Yes you need a broker's license to legally manage property that you do not own in CO.

Check out Every Landlord's Legal Guide by NOLO.