If the loan amount is less than 10% of your net worth (exclusive of your primary residence) and the borrower/deal have been vetted properly it might be something to consider.

@Stan SelwaHey Stan,I have decided to rent a very cheap apartment from a friend, while I focus exclusively on a buy and hold property.

You should not sign a contract of exclusivity with an agent.

I make note of homes that have newspapers piled up on the porch, high grass in the yard or grass growing in the gutters. 

By the way, in addition to discussing Section 453 strategies (installment notes, seller carry back financing) whens speaking with clients or speaking at events, I also discuss 1033 Exchange, 1034 Exchange (repealed), 721 Exchange, 121 Exclusion and Charitable Trust (CRT) strategies so that the client has a brief overview of the most common tax strategies available so that they can make an informed investment decision. 

I'm interested in exploring the mechanics of starting a mortgage finance operation to originate, underwrite and fund loans to investors to purchase, refinance and/or rehab non-owner occupied SFR's and small multi-family property (<20 units) in California.While I've participated exclusively as a borrower of capital to purchase investment property to date, I like the idea of using my capital to make loans secured by real estate.

If we sell investment Condo to convert to primary 2 years later to use tax exclusion and protect gain during investment years will the post 2009 "non qualifying" years (rental) be excluded from protected gain?

The seller IS subject to cap gains tax either way, unless this is a personal residence and a section 121 exclusion is taken.

Curious as to whether anyone's ever signed an exclusive marketing contract with a potential buyer.

I spoke with a building owner today and they brought up an existing exclusivity agreement they have for internet service.