I am not implying that anything is wrong with Networth and I'm not criticizing them for wanting to make as much profit as possible, as do I.  

Thanks @ Bill G.If you could pay the note off in 60-90 days doesn't that seem to imply you could have just bought the note with cash to begin with? 

Gabriel,Some useful info in your post.To others,Be careful to separate TIC investing when TIC used as a marketing label vs. the legal details related holding a title as tenants in common (the original TIC definition).Understand that the initial question implies but does not state that the person is thinking of having their parents sign over there interest and then doing a 1031 on the full property value.

As the topic implies just wanted the hear the expert opinions.

IRS regs are convoluted enough to make this answer more difficult than it should be.The Rules of "Boot" in a Section 1031 Exchange implies you can't walk away from the deal with cash.

I have no motivation to steer you down the wrong road.Not implying what I dump on here as my opinion being comparable to tax code or legal advice from an attorney, but it's free!

Things like holding period, implied intent upon purchase, solicitation, frequency of sales etc... can all affect the IRS's interpretation to whether you are a dealer or not.

The projection implies defaults on about $44.3 billion of commercial mortgages, based on the $1.08 trillion of such loans held by U.S. banks in the first quarter, according to Chandan and Bloomberg calculations.

If the experienced RE investors are not purchasing the properties that are losing money, it implies that the less experienced RE investors *those in the beginning of their REI journey) are buying these properties and losing money (at least until rents increase enough that they are not cash flow negative or the RE has appreciated enough that the appreciation surpasses the cumulative negative cash flow). 

I'm currently a personal trainer at Gold's gym, but my overall goals are financial freedom and the ability to essentially have systems in place where I'm not slaving a job to live paycheck to paycheck.