Here are more clearly defined roles:1) agent2) active investor3) passive investor.4) contractor 5) employeeIt gets very murky when you have 2 or more active investors. because each one may be doing all or some of the above.The cleanest is to have lender & operator.

im not quite sure how you define shell?

It actually acts like an insurance policy, insulating me if the deal goes south, and any potential liquidation is well-defined.

I don't like there to be poorly defined boundries. 8) Encumbering the property: You don't want the operators to be hamstrung in case they need to make timely & strategic moves.

Being in the business of" is usually defined by the degree of income derived by some activity vs investing.

Yes, Washington State, RCW 18.85.101 defines the requirements for a broker.

Resorts' income has very strong seasonality, which is not merely defined by weather conditions, but also by school times, holiday seasons, convention times, and other factors.

If rents are about $500, you purchase with a 6%, 30 year loan, and are using a property manager (therefore putting your total capital, expense and vacancy in line with the more broadly applicable 50% rule), you will still make money if you pay about $25K.

Guess the question is would we want to expose ourselves to the possibility of being the guinea pigs who get this area defined… I think not.

The rules are defined by Freddie and Fannie and those rules say individuals only.