Originally posted by @Wayne Brooks:Agreed, please don’t be tying up people’s houses facing foreclosure if you can’t actually buy....then when you can’t find a buyer they no longer have time to find a real buyer.this is why on the west coast they passed laws in how you can deal with people in foreclosure.. of course like many things real estate does not stop the bad actors.. but there laws on the books to prevent those that have no ability to close from abusing homeowners in distress

If the IRS thought you were a bad actor and wanted to get at you anyway, could they challenge a refi done immediately after a 1031? 

You can discredit those malicious arguments with knowledge. 

Everyone that I've spoke to and that knows the details of the deal agree that the seller and agent acted maliciously and unethically.

Not sure what the long term answer is here, other than working towards greater transparency and filtering out of bad actors on both sides.

I am sure the tenants know that they're getting a steal and are taking advantage of that - probably not maliciously...but b/c they can.

Even if someone is malicious, I believe they will learn a better lesson in life if I forgive them instead of dragging them through a legal battle that will only make their life more difficult.Hopefully this different perspective will spark more insight I can pull from you.

We routinely work with and share best practices with other turnkey companies.While there are many bad actors within the industry as there are in any industry, please be mindful as you post not to insinuate that all turnkey companies operate the same. 

But you get to decide if you want to pursue them.With crowdfunding made legal by the JOBS Act or 2012, even more choices are available to retail investors today.

But my experience taking a defaulted owner and letting them stay was that  wipe out happened 50% of the time within 6 months.. and rare did they go over a year or two.. this is why I see very little value in re performing notes same actors.