These include falsely claiming to have closed dozens of deals when none were ever closed, illegal payment of undisclosed sales commissions to bundlers and independent contractors, advertising the funds as safe and appropriate to investors with obvious near-term needs for their capital, creating fund of funds en masse assembly line fashion with no corresponding SEC filings, unregistered brokers/financial advisors acting in that capacity absent licensure, having customers wire money claim the fund is fully subscribed and putting them into a high yield promissory note, accepting funds from unaccredited investors, misrepresentations about the debt put on the project, lies about experience level of the principals, omissions of material facts, and at least two straight up Ponzi schemes.While it's true that some legitimate operators are having issues in their portfolios, today's circumstances are a perfect example of the idiom, "you can only discover who is swimming naked when the tide goes out."

His negative reaction and aversion to wanting a neutral third party to play referee was a tip off to me to do more research and after paying $25USD for an online background check on the seller I discovered he had multiple judgements against him for business fraud even though the title to the property was clear.My personal lessons from my scammer were1.

My understanding is that the OWNER can be held liable for the actions (or inactions) of the PM.The belief that I am hiring a professional and I should just "trust" them to do their job and leave them alone is flawed.  

Stuff like that cant be unseen - if something unfavorable is discovered, it's permanent. 

During this process, we discovered that there is an industry that resells positions in syndications on the secondary market.

Quote from @Eliott Elias: Quote from @Nathaniel Epps: Quote from @Eliott Elias: Here is where your statement is flawed.

Property is exempt from STR permitting because the jurisdiction considers it to be a commercial lodging establishment.We've been pursuing an SBA 504 loan for it, which was going well until we discovered that the sellers have operated it only part-time the last 12 years -- intentionally blocking 60% of available room-nights because they just weren't up for running it full time in their retirement. 

If you discover that she violates that prohibition, of course, a notice to cure should be delivered right away.

It sounds great on paper but has inherent flaws. 

In early 2023, the Owner/Seller discovered Issueswith the existing property management company resulting in tenantswithout proper background checks and poor credit which led to higherthan-expected delinquency.