Hi Dyanne,What’s your plan to protect your wealth when the market takes a turn?

An emergency fund needs to be liquid, and immediately available to you in addition to being low risk and protecting principle. 

The reality is they are using the investors money for the downpayment, they are getting a huge 80% loan that is non-recourse and they have the private offering to protect them with full disclosure in case the market drops. on the way up investors make 30% easy and even the syndicator will brag about it and will tell the confused investors who cannot even calculate IRR on their own to stay with them as they roll their invested money plus returns forward through a 1031 exchange and now they got even more units to brag about.

In the NE states, AKA tenant friendly states, I would always have a PM to help protect my interests.

A good PM should protect your interests and anticipate potential risks like this.Let me know how it all shakes out!

Exceptional Risk Management - Knowing how to structure deals to protect investors first, even at your own expense.3.

Leverage the Power of LLCsEstablishing a Limited Liability Company (LLC) for your real estate investments can offer both legal protection and tax benefits.

There are thousands of pages on consumer protection laws and regulations that depending how you go about doing a subject to could be against these laws and regulations. so like most things - is itillegal - it depends.  

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Not a normal moderator who makes sure that people who post are posting according to the rules, but an advanced moderator that is an authority on all things that he doesn't do himself, and one that can protect the unsuspecting new investor from dangerous partnership structures and people like me, Jonathan, Don and anyone else you may have on your list.