So this involves hiring an architect draw up plans ($1,000 - 3,000 if I had to guess).  

Now, if they don't want to do that for whatever reason and don't have anybody to work with who would do that for you, I'd have to agree with you that they'd better invest at home rather than getting involved in something they don't understand.

Also look at the rental laws in the areas you are considering, just so you understand what you are getting into and whether you are OK with them or not.

We've never actually had a tenant use it after reading the addendum (which was our goal), and I think it helps prevent problems when they understand the myriad issues involved in its use.  

If the new owner pays on the loan its not "equity skimming" from what I understand of it.

I personally have no connections with anyone who is involved in this niche and I'm wondering how other people have started their journey.

Personally I think Josh himself is innocent but the company definitely is involved in shady and deceptive business practices.

While I have a general understanding of what it takes to set up a fund, I’d love to tap into the collective wisdom here.

The wholesaler created new terms with the tenants and the wholesaler plans to hold it so that the new loan gets seasoned, before selling the note.I opted not to get involved and have started my knowledge building into private lending.

Research the area's nuances, understand BRRRR financing strategy, network with local investors, analyze potential deals, use VA loans wisely, explore financing options, and network through investor groups.