As stated above, you do indeed need to protect yourself by understanding the procedures of sale.  

Okay, that's a little hyperbolic as I know it's not your "standard procedure".  

The 1031 exchange is a procedure that in essence is a sale of investment real estate followed by a purchase of real estate.

Also can you recommend some vetting procedures for screening the tenants?

They further agreed that if any of the principals reentered the business of lending that they would presubmit a written lending policy and procedure manual for government approval before making any loans as well as an automatic annual review of their lending operation, and lending compliance training for owners, of4icers, employees, and agents of the new lending entity.

I do not want to be a jr. lender standing in front of a judge with a defense that says that I relied on the senior lender's loan app and qualifying procedures as my qualifying and documentation process.

These situations vary by state and local laws/procedures.

But if you can suggest me other option other than commercial loan to make all procedure easy for us.

Is this the correct procedure?

I'm currently a full time dental hygienist and part time investor for the past 5 years.