When a dispute arises my Pm's have followed every law to the letter and they provide an attorney if needed.

It sounds like a security to me too:investment of money due toan expectation of profits arising froma common enterprisewhich depends solely on the efforts of a promoter or third partyYou may be able to structure things in such a way where the relationship would be adversarial if the note was not paid on time and thus it would be less security-like, but tying the back-end profit to your performance still smacks of it being a security even if this is the case.  

This practice is especially important in multifamily properties, as it basically protects neighboring tenants against problems before they can arise.  

Cap rate of 5.88% in a small town is not great.You mentioned interest rate at 5.5%If cap rate is 5.88% then DSCR ratio's do not work.80% LTV on retail I have seen it very rarely and interest rate is much higher because of lender risk.No way would I ever use a yearly adjusting rate in a rising interest rate market where I buy at 5.88 cap rate and then if everything is perfect I get a 7.0 cap rate.

They are more of an equity builder than an investor.After building up an emergency account and an acquisition account to take advantage of an opportunity that may arise, I began paying down some mortgages.  

I am wondering if I can explain to them what I do with my electronics or if I am then putting myself in a liable for any non-grounded electrical issues which could arise.

It will likely always be a place where problems arise, Bryan, but at least people won't see influence gains from the group any longer.

Knowing that the b-c is sold for more than the a-b means you don't need any market analysis of the collateral.The fact that the b-c funding is there at the closing table means there is no credit issue.Knowing that the closing agent is insured means they are responsible for and will pay for any loss arising from mistakes in the settlement or the documents.Other than being robbed in the middle of the transaction, I don't see any risk.All the investor needs to know is how to check that these matters are correct and the closing agent can make assurances that the deal is closing.

Any dispute or difference arising out of or in connection with this contract shall be determined by the appointment of a single arbitrator to be agreed between the parties, or failing agreement within fourteen days, after either party has given to the other a written request to concur in the appointment of an arbitrator, by an arbitrator to be appointed by the President or a Vice President of the Chartered Institute of Arbitrators."

Ensure that the forms for all these activities are notarized so as to protect you in the future should a law suit arise.