Also, the real estate agent I am working with thinks that those properties are in upcoming neighborhoods. my concern is that how can I validate that a property is indeed in an upcoming neighborhood when USA.com shows a negative growth rate?

I would like to invest somewhere closer to home if it makes sense as far as my goals are concerned.

My concern is that the funds are exact (tax protected account) and I couldn’t add more easily so there isn’t much if something goes sideways.

If so and you are the middle man in the deal, the only paperwork you need to be concerned with would be a memorandum of the option, and that would be recorded with the county.

@Sam Raj   Your concerns are valid and although you seem to be asking a question, I think you have answered your question perfectly....Taxes should be based on market value....so plan to pay on what you paid. 

Just be sure to set clear expectations so they know you have a business to run.Feel free to reach out to me personally if you have any other questions or concerns!

Discuss with them what your concerns are and if an LLC or proper insurance would be enough to cover your concerns.Tax benefits - you may want to discuss this with a CPA. 

But I am concerned this might lead to the "security" designation.- I will personally bear FX risk but can hedge in many ways. 

But I have my concerns as far as the federal government, are they going to care about me being given money to use in deals?

My concern here is having materials getting stolen & or a contractor taking 50% and walking.- How are you keeping up on their progress?