So on paper, a 12% management fee would lose us business because my competition is charging 8% but still doing mark ups. 

For 2019 and 2020 I am not too concerned as all of my K-1s still show a paper loss, but 2021 will probably start showing some gains and potentially an exit.

These subto transactions from my understanding are pretty much paper assumptions, with little equity and a complete exposure to physical risk, original buyer risk, and lender risk.

So on paper, sure, you'll get there maybe in 8-10 years but reality will hit.

But what looks great on paper and what happens in reality are two very different things. 

.), on paper my properties are functioning at a loss (great for taxes, terrible for DTI). 

Did they progress through the lending/collection ranks to hone their crafts, or are they glorified stock brokers that have simply bought and sold paper without really knowing the nuts and bolts of the collection/foreclosure process.

Building relationships and rapport during property tours can also result in unforeseen rewards, such as sellers leaving equity in the transaction because of the trust and connection formed.Remember, every property tour is an opportunity to collect information that is not available on paper.

When you run the numbers, there could be a scenario, on paper, where this makes sense cash flow wise, because of the interest only nature of the HELOC you have.

That's the kicker with class D - looks good on paper, doesn't pan out that way in real life True that.Paper returns are always different to real life returns.We also never calculate our time and risk as they aren't tangible estimates.D class comes with a lot of time and risk associated with it.And PM needs to be really rough in order to make it work.