It's a public forum, choose to follow the advise of posters with great care.Most investors doing rent to own, L/O and contracts have followed old methods for decades, most IMO are behind the times and while they can read things in black and white in federal laws, they don't always understand the intent, even attorneys have trouble in some areas of financial regulations.

"It looks like it is regulated that way for now because of certain SEC rules.  

San Francisco just passed a regulation mandating that Airbnb collect all TOT fees from homeowner's and submitting to the city. 

If you make an honest attempt of learning real estate first, you'll do much better than trying to take guru short cuts that go afoul of laws and regulations then end up dealing on the dark side.Good luck :)  

On the government side, I purchased properties having the powers of condemnation and eminent domain.You'll also find that building reg types, fire marshals and other government officials can apply "selective enforcement" just as a cop doesn't give a speeding ticket to the old guy in the truck following the young blonde in the red sports car ahead of him who does get a ticket.

Learn the regulations.

Department of Housing and Urban Development (HUD), the agency who regulates FHA loans.The HUD investigator discovered the property was transferred to a new buyer, but the buyer’s funds were not used to pay off the FHA loan.

If you do an LLC, you can easily form the LLC, but the operating agreement (the document governing the actions of the LLC) may require some more work or assistance from an attorney.You may want to consider the role you and your brother want to play once the house is owned by the entity.

If so, I'm shocked there isn't more regulation in the space.If you are un-accredited and are reviewing this board, please do yourself a favor and PROTECT/KEEP your money until you are 100% confident you are able to grow it wisely. 

Most of their fees are regulated so in my opinion, costs vary little (total closing costs should be 2-3% of total transaction amount).