He's also speaking with a CPA, but then he also heard about investing via an LP set up by a Canadian company who operates as an Exempt Market Dealer, thereby circumventing the need to actually set up an LP, himself, but invest through one already set up, instead.

Could be a problem in a house needing a rehab since you are not in title.This "method" has been used by wheeler-dealer operators for people to live in a property and there are ways to simply steal the deal.

Get O&E/Title Report Determine Tax Liens, Judgements & Junior liens (HOA, 2nd ,Mechanics Liens, etc.)Verify FMV:Get local Realtor CMAAsk Realtor about neighborhood/local market details (gang/high drug use area?)

She ended up strung out on drugs, he ended up paying 2 months rent and helping us get her out. 

Anyone know a good dealer?

Are you going to suggest that you and your wife would walk through a crowd of drug dealers and users with prostitutes making passes at both of you to get to the door of a resturant to get something to eat?

As I am also a dealer I can provide whatever information and equipment you need.Ken 

.- Crime and drug problems?

Being a pretty regular note buyer of both 1st and 2nd lien non performing/performing notes as I invest in notes for a living, I could answer some of the following:I invest in every state except NY, NJ, MA, CA, IL(only Cook County)I always want to modify a non-performing note before I have to forecloseIf you show me notes that I have seen from another person, and you aren't the owner of the notes on the title, I will never deal with you again unless your a registered Broker/Dealer and your selling on someone's behalf.  

I am neither an accountant nor an attorney, and I am not sure if someone else mentioned this, but you need to be mindful of the IRS designating YOU personally as a dealer.