On the other hand, if you are accredited, then there are many other choices with much more experience, much more skin in the game and/or much lower fees.

Hi Jaime,I have done fairly well with my properties up in Jersey City, and know the area quite well.

What the IRS does stipulate that all activities of the plan must be for the exclusive benefit of the plan beneficiaries.The IRS recommends the following criteria to determine if a plan’s policies are for the exclusive benefit of the plan participants: The cost of an investment must not exceed its fair market value (FMV) at the time of its purchase.A fair return commensurate with the prevailing rate must be provided.The investment must be sufficiently liquid to permit distributions per the plan terms.The safeguards and diversity that a prudent investor would adhere to must be present.So put that in perspective relative to the lending arrangement you are considering.

Yes, its fairly common to see a group pool money together and invest in another syndication.

As I started to dig into some research I noticed that in fairly affluent areas here in California and in select states that I’m looking (Florida and Arizona) are showing a significant amount of pre-foreclosure homes.

What if you pay a fair price and buy out the family members, the investment works out great, and you're raking in the dough, will they be resentful and think they got screwed?

Also, ensure that the flipper will still have skin in the game.

The transfer forms are fairly simple.What we are concerned about is how much will this cost us?

The landlord tenant laws are also very fair here. 

As I started to dig into some research I noticed that in fairly affluent areas here in California and in select states that I’m looking (Florida and Arizona) are showing a significant amount of pre-foreclosure homes.