If you can structure it to the pint where it cash flows and makes sense for all parties involved, this is a great way to reach your goal of 10+ units with limited capital.

Easy enough.The most important part is meeting the 1031 requirements.

Under the Howey Test, a transaction is an investment contract if:It is an investment of moneyThere is an expectation of profits from the investmentThe investment of money is in a common enterpriseAny profit comes from the efforts of a promoter or third party

To determine magnitude of risk you also need to see how was the borrower qualified for the loan, did they put a down payment, is the loan greater than the value of the property, do they use a 3rd party servicer or who services the note.

@Dwayne GilbertCancel your contact and have one of the two parties pay you on the side.

Just bought a flip in Commerce City - welcome to the party!

INDEMNIFICATION: The Owner shall indemnify and hold harmless  Property Managemer  from and against claims, demands, losses, costs, damages, actions, suits, or proceedings (hereinafter called "claims"), by third parties that arise out of, or are attributable to, the Property Manager's performance of the agreement provided such claims are:1. attributable to bodily injury, sickness, disease, or death, or to injury to or destruction oftangible property, and;2. caused by negligent acts or omissions of the Property Manager or anyone for whose acts the Property Manager may be liable.

-Is there a way to pay contractor's (the deposit specifically) through a third party so they don't run off with your money?

I am open to any opportunity that makes sense for all parties. 

The school board attorney is just another party to the hearing.