He even trains IRS agents, usually in the course of an audit when he's called in to rescue someone and has to teach the IRS agents the CORRECT way (as established by the courts) to interpret the tax code.

He was was audited and investigated by HUD.

If/when I ever turn over my properties to a professional PM I'd expect monthly/quarterly audits of every property along with photos of completed work (as I require for all contractors currently). 

It is faster and cheaper than the process under form 4506 which had been used to audit loans after closing when fraud was suspected.

You clearly had the intent to hold, but you have a short-term holding period, which can make an audit more difficult to prove that you had the intent to hold for rental/investment purposes. 

If they happen to audit you, they'd quickly learn of any obfuscation and that wouldn't be good for you.Again, good for you for taking the plunge.

Morris is the nexus to it all.. one would have to do a forensic audit to see if Morris is making more than a marketing fee.. still unclear wether Morris can legally sell real estate he does not own or if he gets around it by having some undisclosed interest in OP. 

Plus, you have to figure out on your own everything you're doing and what paperwork is required in case you get audited.

.**** this is not covered in the Act, it is an audit trail as there are record retention requirements and an RMLO should keep records of anything s/he puts their seal to.In the note business, any investor who buys a note secured by a covered property can get hung on the discount later on as such notes filter into the market, I suggest you not buy a note concerning a covered property without a seal, either showing compliance of origination or a statement of exemption. :)   

I came from the auditing side, I do not have any experience in the Real Estate Accounting world.