The PM company doesn't really do anything with the 1099s since the rent money doesn't belong to the PM.  

It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.Happy to connect to discuss further. 

The refund part is just to get you get committed to another deal that makes them even more  money than that refund.

My goal is to leverage equity through private money lending (PML) partnerships while building valuable relationships within the local investment community.How I Can Add Value:With 6+ years of experience running various businesses, I can offer high-level and detailed technical insights to help visualize and automate your operations effectively.For example, I’ve developed a dashboard that tracks company expansions across the greater Phoenix area in real time.

They saved up money.

It is clear from the interview that their main skill set is raising money and they partner with other "Co-GPs" who focus on the operations. 

Since you can't control the sale price, you basically have a $4k cushion to your reno costs, or otherwise you lose money compared to the as-is scenario.

IE motivate them for money. 

I would rather do this and retain my money then give it to the bank as interest. 

Also CA requires you to be licensed to originate DSCR and Hard Money Loans (I see on your bio you service CA), and there are many other states that are starting to follow pursuit.