You must use a Qualified Intermediary (QI) to be able to defer taxes.

The rental property he is buying is $275k.He would like to only do the 1031 exchange using the $60k profit (capital gain) on the vacant land he's selling, and keep the other $80k (original purchase price amount for the land) for other purchases (possibly not real estate related).The 1031 tax company (intermediary) has told him that he must put the entire $140k (selling price of the land) towards the purchase of the new property.

It is a direct exchange that does not require a qualfied intermediary, but a §1031 exchange, nevertheless.Your client who traded up could have taken advantage of the tax deferral benefit of a §1031 exchange if s/he had traded up in both equity and debt.

As for landlord experience, I've lived in DC in 'group houses' where I acted as the intermediary between the owner and the tenants (myself included) as far as ensuring rent is collected and deposited, new tenants fill the rooms, the property is clean and any issues like toilets, boiler, furnace etc are maintained.

Is there some type of guarantee or built in intermediary?

Typically, an intermediary will take title, sign the contract with the builder and have the improvements completed.

I found this one very informative as well:https://blogs.law.harvard.edu/corpgov/2013/12/06/jobs-act-title-iii-crowdfunding-moves-closer-to-reality/Interesting to note a cap of only 1M may be raised per year through a crowdfunding intermediary.

The requirements for an issuer are reasonably low.I guess I view this type of activity kind of like prosper.com or lendingclub.com... although secured, with higher limits, and hopefully more integrity via the intermediary function.Regarding "You still must produce an offering disclosure document and submit annual reports to the SEC."

The contract is private and only between 2 people, there is no intermediary.

In addition, each funding portal and each crowdfunding broker is prohibited from:compensating promoters, finders, or lead generators for providing the intermediary with the personal identifying information of any potential investor; or allowing its directors, officers, or partners (or any person occupying a similar status or performing a similar function) to have a financial interest in any issuer using the services of the intermediary.Source: http://www.sec.gov/divisions/marketreg/tmjobsact-crowdfundingintermediariesfaq.htm