I'm doing more research because I do not understand how the SEC or Licensing bureaus are also not involved.

My goal is to understand the current demand and rental potential for ADUs in this part of the city, as well as the costs involved in building.

What to do;  this only works where the house has lots of parking, distance from neighbors.  100% of the time its a neighor who turns you in.   

It would be a direct sale with no brokers involved. 

I have never heard of any NAR agreement for agents to be involved with notes, that is far from the truth.

Might be a little bit confused here, but from what it sounds like you were involved in purchasing the property, renovating it and then selling it?

At first I looked at this as possibly just a failed investment where millions of unaccredited investors lost money (still very bad for everyone involved), but after learning about the involvement of Ronald Fossum that has a convicted history of defrauding investors and the fact that Norada is still raising money from investors, my mind now goes immediately to possible Ponzi Scheme paying past investors current funds being raised.

No PM, we manage at a distance with a solid cleaner and handyman. 

Although the cleaner is probably the most important piece to the puzzle for your STR success, there is alot more involved with managing it.

In the cities the government got involved in housing and low income housing was built for poor people.