The Syndicator Signs on the Loan as A KP (Key Principal) and Becomes a Loan GuarantorBy doing this, the syndicator is putting their balance sheet on the line, since even though most commercial real estate loans are non-recourse, they will become recourse if the syndicator commits a fraud.

The roofer has now come back with suing me for fraud and breach of contract.

That opens you up to a charge of "Fraud in the Inducement". https://legal-dictionary.thefr...You asked about hard money, so I'm hoping you don't mean that you want to do conventional wholesaling, described above. 

What you MIGHT actually come up against is occupancy fraud issues.

In that situation, you and your brother made false claims on a legal document and it would be considered mortgage fraud.

I imagine, we are going to see more crackdowns on this common type of fraud with our housing shortage situation.https://www.post-gazette.com/n...

Now, a civil suit from the owner for fraud that is always a possibility.

I will ALWAYS do what I can to to expose fraud and expose the real diamonds.Success to you all

If you're using an llc use that instead of your name for payment from tenants and have a business bank account under the llc business name if you don't want your name identity known to tenants.

Failure to do so is fraud which enables you to go after the seller or any real estate agents involved.