The excuse contractors always give is that they need the funds for materials.

However, financial freedom isn’t a one-time event; it’s about sustaining your desired lifestyle for the rest of your life.Once you have your goals, the next decision is where to invest.Investment Market/CityThe investment city determines all long-term income characteristics, including whether rents rise fast enough to outpace inflation and how long your income will last.Understanding inflation: It takes more dollars to buy the same goods every time you go to the store.

Quote from @Mike Klarman: Virginia, I would love to hear about a deal or two that you funded. 

The funds are deposited electronically each month.  

There is no chance home owner can mediate, apply for loan modification (which is a predatory disaster in itself) , reinstate or retain the home two days before auction, when they have zero funds and ability to do it.

Lots of fakes out there so be careful.And its not so  much they will steal up front money from you.. but you waste time and money finding a place thinking they are going to fund you put up non refundable EM spend money on inspections only to have your deal die because you got with someone who cant fund or never could fund. 

Quote from @Christine Song: Has anyone invested in AAA Storage growth fund or PassiveStorage.com?

@Jackson Harris as long as your definition of MF is duplex, triplex or quads AND your willing to live in some of the tougher (or at least, less desirable) neighborhoods AND you have patience your plan can work.

Personally I don't think this lends itself well to the fund model. 

I have been investing in trust deeds for over a decade and will continue to do so because I believe this is one of the best ways to invest your retirement funds.