So once you invest, you're added to the operating agreement of the company and you would now own a percentage of the company's assets - in this case it would include homeowner payments, bank accounts, REO's/properties, as well as all of the notes in the fund.The biggest risk of any fund investment is that you could lose some or all of your investment principle if the company were to go out of business.

Remember you are using debt to make this investment, not reserves  sitting in your bank account so I recommend a more conservative investment approach. 

However, this is a totally new space to me- Any advice for how to go about looking for a lawyer who works with individual investors and won't break the bank?

Commercial bank or local business bank - where they will fund as much of the purchase price and rehab budget as possible, typically will have a lower interest rate than option 13.

But....But what if that Bank, financed via borrowed fund's itself, say something like where they themselves only ever had 10 or 20% of the capital they financed and borrowed the remainder via some big bank-2-the-banks?

Melissa, not trying to hijack the post, but I am curious about cross collateral, as I own a 5 unit with a lot of equity and would like to buy using same bank, using the equity as a form of down payment and the new property income to justify a higher tha 75% loan. 

Horse stable in the middle of LA, 20 acres 1/2 swamp next to major airport in Florida, church with 6 acres in the middle of town, contact bank Trust departments and let them know you want to buy.

See what the bank thinks it’s worth.

Is this a bank-owned property on the MLS or is this from a wholesaler?

It just means as a Banker I see the banks money as the way to get rich and save your hard earned money for retirement.If you use your money and fail you are broke, if you use the banks money and fail you sell or find a way to transfer the debt.