From 475.43:All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserve

Then they would walk away from the property or declare bankruptcy with all the gains in pocket.  

Michael A. generally at the time you take out the loan, you will declare if it is owner occupied or not.

In our case, all their stuff was out and the had stopped utility billing in their name so we declared abandoned and took property back.

Look at the Master Deed and Declaration of Trust.

Basically the fund has a preferred of 12% but it is only paid as the managers declare a distribution which is usually quarterly and can vary below the 12% leaving an outstanding balance forward. 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.Some of the cheerleaders have chimed in, but unless they know state laws in each state, obviously cannot give good advice.

I sent to a guy in Fijithat is wanting to do wholesales with me this is his replygood research . but there are certain areas near beachfronts which has been declared by government as tourism free where foreigners can buy without any hassle and build.

Gone was their credit rating if they had to declare bankruptcy.

The want to make a little bit more on their investment without moving a muscle and I use capital for flips, I assume all liability, work and selling of property.