There's no step by step guide but there are key things : Learn: RE strategies, what interests you, what do people in your area need.Connect: find a mentor, accountability group and be around those doing what you want to do.Help: solve problems- do people need dealflow, property mgmt, construction expertise, etc. 

The interest rate is not special nor is the 20% down (80% LTV).  

I have had a long term interest in purchasing an investment property and I'm looking to be smarter about this.

Many investors share opportunities, tips, and advice in these groups, which could lead to mentorship connections.Shadowing tips.

And if this is illegal in some states...what exactly is illegal about finding interested investors and matching them up with a funding source?

Short Answer is yes, via interest tracing rules. 

The good ones will have access to off-market deals. 

First and foremost you are just reading a newspaper article.

I've lost friends and family to substance abuse so it seemed like an opportunity to do some good and make money in the process.I negotiated a sweet deal, and was prepared to buy it myself, but a few of my clients expressed interest and I ended up helping two of them form a partnership.

This resulted in literally weeks of delays, which contributed to the closing being postponed and rescheduled, losing our locked interest rate.A big gap in the overall Kiavi process is that we never received detailed introductory emails about the steps of the refinancing process.