On the other hand, I think that long-lasting relationships are built on deals getting done, and mutual benefits to both parties - not just on contractual commitments to work with someone if something gets found..

The interested parties (homeowner, mortgage co or lien holder) have the right to redeem the property all the way up until the tax sale foreclosure case has been completed (Judge signs order).

Buyer has examined the Premises and is relying solely upon such examination with respect to the condition, character and size of the land, improvements and fixtures, if any, constituting the Premises.At Buyer's own cost and expense, Buyer shall obtain and maintain in full force and effect at all times during the continuance of this Contract: (a) comprehensive liability insurance for bodily injury or death to any person or persons, and property damage insurance, in such amounts as Seller reasonably deems necessary; and (b) fire and extended coverage insurance in an amount sufficient to prevent Seller from being a co-insured under said policy of insurance, but in no event less than the unpaid balance due under this Contract.Seller and Buyer shall both be named as insured parties in the insurance policies required above, as their interests appear, Buyer shall furnish Seller with memorandum copies of such insurance policies upon Seller's execution of this Contract.

Some states as you know are really coming down on this .And I suspect all states have the same verbiage in their statutesIE for expectation of compensation when bringing two parties together to buy real estate that a license is required.. "   Just like the mortgage industry.OTher wise why even have a Real estate industry and license.

You can't buy from or sell the property to yourself or any disqualified parties (spouse, parents, children, generally) nor rent to them.  

Basically, the less interaction with the investments, the better.A Checkbook IRA LLC or Solo 401k will put you directly in control of the funds and eliminate the 3rd party layer.  

@Bobby SaeediI'm really late to the party but just found your thread and wanted to see if you followed through on this idea. 

All parties KNOW that the sponsor is raising money from INVESTORS.. will the bank demand proof from each and every investor that their funds aren't borrowed?

Life is too short for long pity parties.

I still have a mortgage on my current residence and have heard that transferring this to an LLC could trigger the mortgage company to consider this as a sale.For the purposes of protecting myself and keeping the rental house seperate, I was wondering if it would be beneficial to start an LLC purely for managing the rental party.