Borrower must occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and must continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent will not be unreasonably withheld, or unless extenuating circumstances exist that are beyond Borrower's control." 

This chapter does not apply to:(1) the sale, lease, or rental of real estate by an unlicensed owner of real estate who owns any interest in the real estate if the interest being sold, leased, or rented is identical to the owner’s legal interest;(2) an attorney at law acting within the scope of his duties involved in the legal representation of a client/owner;(3) agencies and instrumentalities of the state or federal government and their employees acting within the scope of their official duties;(4) foresters registered under Chapter 27, Title 48, if the sale of any land is merely incidental to the sale of timber on the land; or(5) court-appointed receivers and trustees while acting within the scope of their appointment.

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

We will fund this internally for our fund and take an assignment of the security instrument and endorsement of the promissory Note. 

Their podcast and book have been instrumental in shaping my knowledge base.

Title companies can refuse to insure certain instruments or methods of holding title. 

We will fund this internally for our fund and take an assignment of the security instrument and endorsement of the promissory Note.

Whoever owns the note can theoretically profit when a lower interest note is paid off, and the money is lent out at a higher rate.However, the decision to call a note for violation of a covenant in the Mortgage instrument my also include acknowledgement of one or more possible downsides1.

I went to the office probably 10 years ago when there was more foreclosure volume.. his and her Bently Coupes kind of told me what I needed to know  :)

You could provide a license to work or another legal instrument for the project to proceed, but physically close only when you are ready to complete the exchange.