Tenant agrees not to place into any drain lines non-approved substances such as cooking grease, sanitary napkins, diapers, children’s toys or other similar object that may cause a stoppage.

This is against the Economic Substance Doctrine which states that a transaction has economic substance if: (1) the transaction changes in a meaningful way (apart from Federal income tax effects) the taxpayer’s economic position; and (2) the taxpayer has a substantial purpose (apart from Federal income tax effects) for entering into such transaction.It is self explanatory. 

And if weed is not legal, smoking an illegal substance is not only grounds to reject a tenant but also eviction.

The age or condition of a roof doesn't have any relation to the amount or substance of liability coverage that you can place on any given property. 

Every one i've been to ended up turning to networking events, with little to no substance in education. 

Let's see; I want to be a real estate investor, so I'll put my money in a property that is dirt cheap, low rent, high vacancy (excluding squatters and substance aficionados), high crime war zone and believe I'll be successful?  

If you have cash to start (or a "cashlike substance"), and good credit, or can partner with someone that has what you don't, you can accomplish your goal very easily...and  quickly.Basic Steps to success:1 - Buy property and rehab using cash2 - Season property long enough to refinance all your cash back out3 - Re-use cash on next deal4 - Repeat previous steps until you've reached you goal.Since you are re-using the same money for all the properties, the only cash/money you would need is enough for the most expensive property.  

I was saying that it could lead to many people doing such thing and also pointing out the lack of substance the IRS would consider that personal statement to be.

This can obviously change depending on how the arrangement is structured and substance rules over form.As has been mentioned if the lender fails to participate in the upside it is unlikely this can be called "profit" under the Howey Test either.Gene Trowbridge has issued all sorts of advice on this.

Seems he was thinking it was some kind of a goo type substance, like maybe food/grease.