And in underground parking is mechanical's.

The home needed a lot of work including roofing, windows, siding , kitchen, baths, and mechanicals.

Oregon saw it that way as well.. many folks got cease and desist using guru on line training techniques this just formalizes the activity and levels the playing field and gives both buyers and sellers a mechanism to get out of deals and or have a regulator step in..

How old is roof, mechanicals, FFE? 

I'm not saying scams don't happen with more expensive assets but it does seem like the mechanics of this particular scam were intentionally set up to eliminate banks and institutional investors/target unsophisticated investors. 

The mechanism would allow the property to be re-deeded to all of the LPs as tenants in common. 

So on page 6, Modern Money Mechanics: Federal Reserve Bank of Chicago, it explains that banks don't "pay out" the funds for loans from money in other depositor's accounts.

If more important items such as plumbing, electric or mechanicals are not working we will also address that for them but typically we avoid those kinds of properties if its to extensive.For those who are familiar with wholesaling you fully understand that to wholesale none of what we just mentioned above is necessary or obligated to be done in order to wholesale.

This far the mechanics of what he is doing are clear to me.

So how you bring the money into the picture is just a mechanism, the reality is you do want to own the asset.