You'd want to work with the REIT sponsor and your CPA to understand the expected timeline for this a bit more.  

I'm not seeing any mention of this.

Without knowing stuff like this, all the answers provided are meaningless. 

This works with any type of appreciating property such as real estate, stocks, etcDepending on the appreciation rate, you can potentially see asset values double every 7-14 years.Likely around 7 years if the appreciation rate is 8%Likely around 14 years if the appreciation rate is 4%If you buy something for $100,000 and it appreciates to $200,000, you can potentially take a loan on the $100,000 appreciation which would not be considered a taxable event.However, be mindful that you are paying interest on the loan and you have to payback the loan but yes, it would not add on to your taxable income.

Can they bypass this requirement if paying in cash?

My question is, if I was to proceed with the Subject To deal, will this somehow be discovered?

This is one step in a long journey, and I'm glad to have found a community that is as passionate as you all are!

I would be very careful with this arrangement for your clients.

Quote from @Jerry Zigounakis: This just in from proper insurance"Thank you for your interest in Proper Insurance® Due to strict brush/forest fire scrutiny, our program underwriters have declined your property coverage.

I am on the board of the RPA (Rental Property Association of Wisconsin, a non-profit) and typically hear if things like this are an issue from our members or attorneys.