Working with other individuals on an exchange demonstrates that the person in question has been deemed trustworthy to carry out this task in the past.

The challenge with HUD is as Tom said - you put down earnest money up front, demonstrate proof of funds and must take title in the name that is on the original contract.

In August of 2014 you changed that intent to totally investment and now for the past two years have been demonstrating your intent to hold for productive use for this particular piece of real estate regardless of it's legal description.  

So make sure that if you want to sell and get 1031 treatment that you can demonstrate that your intent was to hold but the market or it's quality as a rental or something tangible changed your mind. 

I had thought of implementing what you said by giving the option to the owner of demonstrating history by giving us a link to their property on another site, but as someone pointed out there are a lot of scrapers out there and quite frankly we don't want to be associated with that.

Just like there is precedent for entitling raw land but not turning a shovel on it and still be eligible for 1031 treatment especially if you feel you can demonstrate that your intent was not primarily resale and some time has passed.  

It's pretty transparent for a transaction as long as you feel you could demonstrate your intent to hold for productive use.  

Make sure they have the experience that demonstrates they can succeed on the syndicated project.  

Magistrate’s in any future evictions will exploit any lease imperfections to benefit the tenant and today’s competitors are very professional refits so they will exploit your lack of professionalism if you demonstrate it.

And demonstrates to the HML you will be able to pay off the loan.3.