Now, if they don't want to do that for whatever reason and don't have anybody to work with who would do that for you, I'd have to agree with you that they'd better invest at home rather than getting involved in something they don't understand.

I will always take a deposit unless I know the people involved. 

Undoubtedly, the biggest regret is getting involved in the short-term rental market.

In that case you should get an attorney involved as encroachment would be a material issue that if known should have been disclosed both to the broker and to any potential buyer.  

Keep in mind magistrates deal with MANY MANY cases involving small issues so their rulings OFTEN may not follow the correct technical application of the law.

Is there some other way to verify his involvement? 

This could involve offering a higher interest rate in exchange for reduced upfront costs or deferring payments until a certain milestone.If building right away isn’t feasible, consider buying the lot now with the goal of paying it off over time, and save up to build when rates and budgets align.

Shouldn't be any extra taxes involved.

(currently  I have been sending my investors a 7 question survey to fill out for their criteria)My goal is to build genuine, long-term relationships with investors by creating opportunities that benefit everyone involved.

In addition, you still need to meet the IRS requirements for material participation in each property or elect to group themBased on what you say it sounds like it would be challenging for you and your wife to meet these requirements unless she gets involved in more real estate activities that qualify for REPS hours. ...