Ground game cannot be understated.

If not, he needs to comply with the SAFE Act, and your transaction, will not be owner occupied and may under state law be considered a seller financing transaction which means you will need to comply with the SAFE Act as well.....And, you need to check under state laws as to how lease-options might be treated with the new Consumer Federal Protection Agency (CFPA).If anyone tells you that this type of arrangement is OK to do without being concerned with those laws, they don't have a clue and it sounds like you're being coached by someone that has an interest in the deal.

More to this point which is WAY understated. 

That's ok tho, you can raise capital under 508 SEC rules (there's a lot of them), or you can just keep the deal and investors in your state, and raise it under state laws.If you don't have a cooling period between deals, you basically are selling securities full-time, and have to get a stock brokerage type licenses to sell it, thus why peeps like to do a fund, so they can raise a bunch of capital, then do a bunch of deals or one bit deal over the cooling period.Truth is, most people just keep it at arms length, if they have known you for at least a little while, then they do business with you as it falls under the 508B rules.I decide it was better to just take the plunge, and go full 508C.

I really should have a brochure or blog to reference for this question.Entity structures are state creatures under state law; IRS tax designations (s- or c-corp, or disregarded) are under federal law.In Texas, the only state in which I am licensed, foreign entities (an entity not created in Texas) must be domesticated in Texas. 

Sometimes the more understated you come across the better.

If you used your own investor super duper buyer friendly whiz bang contract and left out such damages, then the seller will be free to seek what ever damages may apply and justified by some attorney under state law that could end up being more than the usually agreed to penalties.I suggest you go to the lender and ask to see a blank note if you really must.The problem could arise since you don't really know what customary terms are that you'll form an uninformed opinion and just get cold feet.You will have three days prior to settlement to review documents, nothing will be changed unless there is an error.

In a great area but choosing the right tenants is so understated; One bad tenant can potentially ruin your cashflow as it may drive the current good tenants away.  3) Cashflow isn't the only or most important metric to consider, especially if you're 3% down in a growing area. 

The basic "guru" pitch is that by buying training or resources from the guru, an inexperienced, uneducated (in real estate), and unknowledgeable investor lacking sufficient capital can become very successful in a certain area of real estate investing/business.The problem with most of these programs center around the following(1) The program taught doesn't actually work(2) The program does not provide the person purchasing the program with the knowledge, experience or education neccessary to successfully implement the program(3) The program contains very basic information that can be obtained far less expensively by other means(4) The trainers and consultants provided are inexperienced and/or incompetent(5) The program accepts anyone who can pay although many accepted don't have the neccessary personal tools to be successful(6) The program makes false and/or misleading promises(7) The program understates the amount of capital neccessary for success(8) The program understates the amount of time and effort neccessary for success(9) The program overstates the size of the target market(10) the program assumes that because of success in one market it will be successful everywhere all the time.There are legitimate real estate consultants/trainers out there with a track record of success.

The IRS can only go back 3 years typically (unless you have understated income/overstated expenses more than 25%).