@Jadan WilliamsIf I were in your shoes, I’d start by clearly defining my investment goals and identifying target markets with strong job growth, population increases, and development potential.

Steve,thanks for the comments and the reference to the IRS documentation to clear up this matter for me!

One idea he had, was to re-sale with cleared permits etc for a four plex. 

If you plan to do the work yourself, then that is where is becomes less clear especially if a buyer feels you did a less than 100% professional job.

All of these factors/considerations impact each other to some extent and its impossible to know whats possible until everyone in the group is clear on what they need/want this to look like.Either it sounds like you're on the right path with the line of questioning. 

When you find a sponsor you like, do yourself a favor and get clear on what your experience will be like AFTER you have invested.Does the sponsor have a communication plan?

As a sidenote I see people doing this and jacking up the price of the home to seller finance to above market value - if you do this you better be VERY clear with your investors that you are writing a $300k loan on a $250k property as if you do not you can get in some serious hot water later on down the line when doing valuations of the company. 

Clearly this structure has been discussed amongst prospective partners since "Mike the builder" has instructed the parties how the purchase agreement should be papered.  

Bob doesn't realize his payment didn't clear until he gets his statement, he is in default, Joe calls the note due just to get at Bob and knowing Bob can't pay it off.

What is transpiring now is clearly disputed on who has rights to what assets. 5. if you read everything in the SEC and their 1-SA and financials, if you see how much they paid in salaries/bonuses you would vomit.