In many cases the workers were either not allowed or 'exempt' from social security withholding due to their pensions.  

So if you RTO the home, rather than 'selling' it and carrying-back a mortgage, then you may well also be exempt from the needless regulations.  

@Natalie Kolodij It was hard for me to follow what you were saying, but your exemption may not apply to those deemed to be "dealers", I'd suggest you do more research specifically to your state exemptions.

Hi Bill, Very excited to hear this news as it impacts an upcoming deal for us, but just to be super clear, when you say that 1031 exchanges were not included in the house markup, does that mean that the discussion to eliminate this exemption is now off the table (understanding that it can be resurrected at a later point of course), i.e., the proposed tax bill no longer addresses 1031 exchanges at all?

Honestly, along with the Roth IRA, I am amazed that the government allows this safe harbor exemption.  

.- Equity Residential: A large residential REIT that owns and manages apartment buildings in major US cities.Rule 506(b) vs Rule 506(c)To give investors more access to private real estate investment vehicles, in 1982 the SEC adopted Regulation D, which provided two exemption options for private offerings of securities in the US: Rule 506(b) and Rule 506(c).

Is it possible to use the contractor licensing exemption for a property I plan to occupy only once it's completed? 

Hi @Eli Kallison, a fund that uses a Regulation D exemption can accept unaccredited investors depending upon the specific exemption filed.

@Jordan Buie you must have lived in the house for 2 of the past 5 years for it to get the exemption.

If you are staying in one state, raising a low amount of capital, and/or are securing the investment, you MAY be able to use a self-executing exemption in a particular state (note: most states are awful and have no such exemptions.)