Regular Inspections: Conduct frequent site visits to monitor progress and ensure quality standards are met.

Great points from @Doug Smith and some I will be leveraging in my own work.We do some "pitching" of startups to landlords and while not a 1:1 comparison we generally also leverage the credibility of the team or consultants that the startup is using to mitigate their risk. 

Consider hybrid strategies, such as mid-term rentals, to bypass stricter STR rules.Engage a local real estate attorney or consultant to identify flexible markets and ensure compliance.

@Eva Sha - Yes, I generally advise emerging developers there will be anywhere from 5%-8% in closing costs (depending on the size of the loan), which include lender costs/fees, attorney's fees, and title fees, plus any other consulting fees.

It’s crucial to run the numbers and consult with a lender who can tailor solutions based on the specific investment goals.Best regards, Stevan 

They most certainly should seek legal opinions and consult with government agencies. 

I would definitely consult with a lender first since I am not completely sure. 

You should also check to ensure they have Errors & Omissions insurance, Fidelity Bond coverage, and a Financial Institution Blanket Bond.Some are more consultative and advisory and provide guidance, while others are just processors. 

I've had success with Eagle Eye Networks.Next consider if you want it monitored or just recorded.

Rud, Syndication deals (and crowdfunding deals which are essentially syndications that are allowed to market over the Internet) can be set up in numerous different ways.So there isn't going to be one single answer for this.To answer your question, I am not an accountant and you should always consult with your own tax accountant before making any investment decision.