:) @Scott D Burrows said it best, you will need legal council for that question, however my  non legal advice would be if you draft a promissory note and arrange the terms for how the money is to be used and disbursed you should be ok ..

Arranging expensive legal documents such as a Private Placement Memorandum is usually cost prohibitive on smaller deals as it will make up a relatively large percentage of your actual invested equity.With a small amount of investors it is usually best to structure a deal through a joint venture rather than a full syndication. 

Certain attorneys can work with wholesalers and they generally arrange title and closing issues.  

Time spenton repairs, collecting rent, negotiating leases and providing tenant services counts.Hours put in for arranging financing, constructing long-term capital improvements,and driving to and from the real estate aren’t included in the 250-hour standard.If the 250-hour test is met, you can treat the rental as a trade or businessfor purposes of the 20% pass-through deduction.

Just some of the thoughts that ran through my head when I was contemplating the same question.

(Adopted 2/86)Article 5 (Case Interpretations for Article 5)REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties.

That’s why my PM arranged this plumber with gas certification. 

I was very naive when I arranged my financing (started with 35 yr amortization) but switched over to a HELOC in year 7 and paid it off by 2013) I wish I had tracked the amount of interest I paid!

@Samer JaberThe arrangement that I made with my brother was that he would get a slightly discounted rent. 

A view of bureaucracy that I had never contemplated.