@Rud Sev Preferred returns for use of capital in a syndication are typically taxed as interest, not as a return of capital.

Hearings take place in the small claims court which is designed for non-attorney litigants and has relaxed procedures and rules of evidence. 

Be aware of tax implications: rental income is taxed in the property’s state and reported on your California return, with deductions for travel, depreciation, and expenses.

This brings me to now, I've taken this approach and have used my own money in lending, but am also bringing in friends and family to take part in these transactions so they can earn way better returns than with CD's.

Here’s what I’ve learned so far: Investors want deals with solid profit potential—so they’re always looking at the numbers: a good ARV, reasonable rehab costs, and enough room to make a return.

From the Great Recession to Q1 2022 it was easy to find RE that seemed very likely to produce outstanding return. 

Also -without an in service rental, you have no schedule on your tax return on which to deduct those expenses. 

In Oceanside, New non-hosted STRs are prohibited outside of the Coastal Zone as of February 10, 2024.Most HOA's do not allow rentals less than 30 days so that is likely not an option unless you find a couple of places on the water that allow it but usually tough to find below $1M. 

Given that I am self employed, a few personal loan options, did preliminary asking about my situation, and they got lost in the weeds with how my real estate income looks so dismal on tax returns.

I would recommend reaching out to @Denver McClure as he may be able to help with a non-conventional loan