Much of the risk, besides the obvious issues with holding an interest that isn't recorded, is unknown (even unknowable) with the uncertain application of the new legislation and how mortgage originators might adjust internal policies.

What legislation are you referring to?

SB354 in Texas Legislature threatens Preforeclosure Investing In an effort to curtail so-called "foreclosure consulting", a bill introduced by Texas State Senator Craig Estes in the current legislative session contains provisions that will make it almost impossible for legitimate real estate investors to purchase pre-foreclosure property before the auction.

Never cease in your desire to learn as this industry is constantly evolving with ever changing legislation.  

Legislation a couple of years ago allowed homeowners with mixed use property to treat all of the sale profit as profit on the sale of a primary residence, so in this instance bifurcating the sale to participate in a 1031 exchange could be unneccessary for most.Just how I see it.

-Use of SDIRA will limit Partner #2’s involvement (e.g. sweat equity) in rehab due to strict legislative rules.

All of us California investors should put pressure on our state legislators to allow Series LLCs here so people do not do these wacky schemes like forming out of state LLCs that are manged by a CA LLC as a shady way for evading state taxes.The state has a significant amount of money to gain by enforcing tax law.

We gave them each a deposit-only bank card and told them we didn't care if they made weekly or bi-weekly deposits provided the full amount was there by the first of the month.This is a different thing than renting on a week-to-week basis, which here is treated differently in the tenancy legislation.

We are all only one bureaucrat, legislator or liberal activist judge from wholesaling being deemed illegal.

I'm in NYC and a few months back they passed legislation not allowing any "unhosted" (full home) rentals in NYC.