If any complications or defaults arose, the client could recover from the lawyer because no other lawyer could defend the client lawyer's recommendation that the creative deal was sufficient, particularly in hindsight when the client has now suffered a loss and made a bar complaint.

The pro's of creating a fund is access to large amounts of money instantly (once the fund is raised) to fund your deals, but the cons are the legal, compliance, and costs associated with a fund.The pro's of the private money solution is a much less complicated relationship than a fund...but the con's are that you have to have a bunch of private lenders ready, willing, and able for every deal you find.Curious what the BP community would advise?

I understand there is a lot of complications with out of state investing, but it seems like it can be done and that the rewards can be worth it!

The reality is its a lot more complicated than that.

Also, need some advice on formation of partnership which gets complicated when you have 3 to 4 investors.

So I took someone based on her divorce decree and child support initiation, not realizing that while the Ag office would enforce child support, it was complicated if out of state and if employers changed.  

Another thing about foreign entities, while these are done for benefits under the state law of the state where they are organized, your state law may be given greater weight or be applied in some situations over those of the organizing state, real estate laws won't be looking at the color of the organizing state.IMO, and I'm not an attorney, is that foreign corporation status, complicates filings and taxation requirements, the benefits initially sought may not be applicable since you're not really operating in that state.  

Quit claim deeds can complicate the chain of title.

Interestingly, simple models and rules of thumb will outperform complicated models in such highly complex systems with many variables and too many unknowns.

Read somewhere on the internet at work about rentals and thought I'd give it a try. 30 days later I closed on a complicated unwarranted condo and rented it out in a day.