There's something like 25,000 agents in Denver, and a small fraction of them are doing the vast majority of the deals.

Of course many of these homeowners bought their homes years ago when prices were a fraction of the cost they are now and might have their homes paid off or a small mortgage .

So there is no question in my mind all these folks that think Hey I will just help these people and let them invest with me while I do all the work.. etc.. run a huge risk.. and for what to buy some low value asset to make a few grand a year.. not sure like I said why anyone would do that.. but I suspect its taught at some of the note schools.. and we know gurus are not on the front lines of what is legal and not.other wise there would be no reason for the bigger established players to create 500 series funds.. no need at all they would just JV all the notes.. easy peasy... in CA you can fractionalize notes legally without securities but you need to be a CA broker or NMLS or have consumer finance license all these states have their thing.. that was part of my problem in Oregon..

@Dustin Booth In addition to the ideas above, I wanted to throw it out there for you: if you cannot find another asset to 1031 into, consider a "fractional interest" as one of your 1031 choices.

An umbrella policy from a reputable insurance company, in the amount that makes sense for you, will give you the legal protection you need to get started, for a fraction of the cost.

RealtyMogul - https://www.realtymogul.com/ - Also utilizing Reg A+, they recently added what they call the MogulREIT, with an advertised return of 8% and also with a minimum investment amount of $1,000 HoldFolio -https://holdfolio.com -Investors purchase a fractional ownership interest in a portfolio of 10 single-family rental properties (or a single apartment building) that the company already owns, receiving both fixed interest payments and a profit-share upon sale or refinance.

However, you could use your $100K to put down on the $190K fractional interest. 

Your rates should be a fraction of a local motel (70% or less ) to make it worth awhile.

You can by the same house here, that you can in California, for example, for a fraction of the cost...and cash flow (with a PM and financing), at least $3 - 400/month. 

Doing a high-quality maintenance job by myself for a fraction of what I know I would have to pay a local tradesman (whom I am also sure would do an inferior job, sometimes an unsound job, as a matter of course to maximize his profit and minimize his time expenditure) also gives me immense satisfaction.Finally, I live in a city where outdated yet sound properties in passable locations can be had for very little money, fixed up for minimal cash outlay (as long as you do it yourself), and rented for competitive rates.