It does no good to place capital with a sponsor who has a project with an attractive pro forma to find out later they can't be trusted.

If you are in one of the nicer suburbs, you can probably recover something of value form a sale.  

Actual performance rarely matched up with pro-formas when it comes to lower class assets, and leveraging these assets at 90% LTV is going to put you in a vulnerable position.

Within the single family asset class, the lower price point homes tend to perform even worse over time despite the appearance of cash flow in a pro-forma.

(ii) Such complaints shall be in writing and shall contain such information and be in such form as the Secretary requires.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Now interestingly enough, the WY trust can form a separate WY LLC (call this Asset Island).

Money is still cheap and in abundance right now. time to do a crowdfunding project, become developers then form a REIT.

That's a big issue and needs to be in writting since you intend to form a partnership. 

But, if he stays on the loan it isn't an issue.I usually form a joint venture agreement with the partner.