Just for followers of this topic, This becomes your employee and has State Labor Board consequences, benefits, SSI and liability issues. 

My wife is a realtor so I have been able to hand off some to her to list on the MLS which is a nice benefit.  

I give the benefit of the doubt assuming they just don't know any better.

The tax benefits of being a business FAR outweigh any such risks, IMO.David J Dachtera"Success is not a destination.

I've heard others form in NV and DE thinking it benefits them... but does not do anything really in the endMike

The security for the loan is either (a) the interest in the trust as a beneficiary or (b) a mortgage/deed of trust on the land held by the trust benefiting son and family.  

I have seen these go very bad.For a very well financed investor who if the loan is called can cash it out without benefit of rei  ( because they can't refi because they don't own it)  and can continue to make the payments if the person they sold it to defaults while you go through the foreclosure process.. this can work.But the risk to the seller is great in these deals.The risk to you as the middle man is simply your conscience...

@Bryan Hancock One of the benefits of the old rules for accredited individuals was that they were easily understood.  

Other benefits include Tenants refer other tenants (because they are treated right) and those referrals are usually in good financial standing as well, tenants are not as "quick to blame the landlord" when something breaks and maintenance requests actually decrease because they have a positive image of landlord and try to fix minor repairs, it also shows throughout the company the attitude of owners and that this is not just a numbers business but a PEOPLE BUSINESS.

Most properties that I'm looking at are in the 35-75k purchase range and ARV values of around 110-150, with average Reno cost of around 20-30k with most projects taking 90 days also since there are a lot of FHA loans on these properties it really doesn't benefit to flip it any faster.