Any leftover gain is taxable.The $150K left after paying off expenses isn't directly taxed.

If we include investments in mortgage loans (trust deeds), real estate partnerships, REITs as well as direct property ownership, I’m at about 80%.  

First, the three (3) Private Letter Rulings will likely not be directly on point, so there will be some inherent risk in that you will not be able to follow the Private Letter Rulings exactly as they were issued.

@Beau Wollens A bit late to reply, but please tell me you bought this deal.

Even those with long track records are strugggling to raise $ as well as break even on deals 

LoanGuys is a direct lender.

Usually there's a lockup period (often three years) in note funds, so you can't use that cash to do direct note investing.  

I'm in Peter's course and maybe it is different for me but I get my 10k back after doing a deal(s) worth $500k which is easy to do really.. feeling close to getting that done in the next few months.

Are you new to real estate investing or already diving into deals?

cost of doing the deal.