If you mean security backed by collateral, you are correct.

However, they can deduct the interest they pay to you as part of the seller-financed agreement—if the loan is secured by the property and you provide them with a Form 1098 (Mortgage Interest Statement) for their records.

@Placeholder PlaceholderOne word of caution I would advise: If a community or local government is enacting restrictions and also regularly enforcing them, then its often a reflection of the local community sentiment which increases the chance of a neighborhood or nearby resident calling you in if they think you may be running an STR.

Social Security also has a consent based ssn verification process where a SSN can be verified with the parties consent.Again, we can never be 100% full proof but we can stay on top of the latest ways to mitigate the fraudsters at their game.How are you catching fakes?

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I have people coming and going on a regular basis.

When rates re-trace and other folks start trying to deploy the capital, I want to know I secured the (right) asset.

Quote from @Jordan Kaylor: I'm new to real estate investing and have secured a HELOC on my existing home.  

Utilizing my relationship with a great local lender I started the process of getting a secured line of credit set up against the 3 unit so I could pull most of my money back out.

I've collected thousands in security deposit from my guests who've caused damage.