People can further protect themselves by staying small and putting their eggs into many baskets rather than just one or a few, at least until these startup sites pass the test of time and have a track record that can be evaluated.I believe crowdfunding has a promising future, but I'm only toe-dipping right now.

You will be hosed in a major way if after a year the guy comes back and lies and tells the court you promised him this or that.

I see that you meant that, in a syndicate, the passive investor gets his promised 7-8% (whatever it may be) and the Sponsor is the one who has to worry about increase in property taxes or anything else for the matter.

And if someone promises to do a private loan even close to that, run away from them because it’s a scam. 

You are asking for trouble making these karma promises.  

Yeeessss, but check the credentials of this private lender.. there are a lot of fake ones out for your info trust your gut

those that ask for up front fee's are 99/9% fakes and scammers.. rampant on the internet.suck you in with interest rates that are not real.they steal others websites and put thier names on them.bad english.. offer to send copy of fake LLC registration like that matters.then they will offer to send you a copy of their ID with them holding it.. all of these things are not done in the industry.

We pick out some pockets with the cheap promising properties and see if the neighborhood and surrounding areas are really areas we feel good investing in.  

So I got stiffed a fake good deal, not to mention how many times I had to call the bluffs of many contractors because they were trying to add the out-of-state premium. 

I personally wrote a check to this homeowner for $250 (with an additional $250 promised after handing over the keys) and gave him 2 additional weeks to move.