@Nicole CotrinoKey factors: Do you materially participate in managing the property?

While this isn’t ideal from a transparency perspective, it’s a foreseeable outcome when the regulation doesn’t directly impact flipping economics.The Bottom Line: While AB 968 may promote transparency in theory, its real impact will likely create more complexity and hurdles for sellers of distressed properties and newer market participants rather than significantly altering the business strategies of established flippers.

Can a long-distance investor be considered materially participating in their STR property?  

The rental vacancy rate in Decatur is barely over 4%...not a bad number. 

@Ian M.For the owners hiding behind the bare trust agreements, you can pull up their names by doing an online search for "David Baines: Real estate investors settle class-action lawsuit" Mr Baines before he retired was a business columnist for the largest newspaper in British Columbia, the Vancouver Sun.In this article you can see the payment the defendants (who I am talking about) had to pay out to the plaintiffs.

I appeared remotely in one session front of the judge alongside the attorney, who was barely competent.We ended up reaching a settlement through the court system, which I offered as a gentleman's agreement.

But if you barely have any information on them being a solid lender, why risk it?

Maybe start finding deals to wholesale, which will sharpen your deal evaluation skills and generate cash for future investments.If you find really good eals, you could even require that you participate or get a piece of the deal.

@Ricardo Polanco barely qualifies as a lease:(This "lease" leaves you open for a lot of abuse and we don't suggest trying to terminate it on your own - or you may get an EXPENSIVE lesson from a judge!

It appears that you are ready to participate passively.