I dont understand how they could deny 300 thousand in cash if they are in all this debt. Or

Unfortunately, I am currently paying down a lot of debt or it would be sooner.

Again as a beginner i see this as a problem but maybe it's my mindset and my goal should be on having no debt (or paid off houses).

Should I sell my secondary home or get 2nd mortgage/ cash out refinance/ HELOC?I'm a 3rd year realtor($60k in the pipeline the next 6 months) ( with aspirations of flipping)  and my secondary home is ((owned for 10 ye...

Private lender can be a debt or equity partner.  

Too many people rush into either paying off debt or making investments but don't have the reserves to save them IF something unexpected came up.

Look at how much return you get on the equity in the property, then compare that to what return you get towards paying down your other debt - or making an additional investment.  

Torn between continuing to put all of my paycheck directly to my debt, or start making minimum payments and begin investing in some rental properties or a flip that will allow me to pay off the remaining debt with the profits. 

This is the same argument as putting 25% down or all cash.In fairness, many successful BP'ers will advise you they sleep better with no debt....or less debt.

The best way to find out is to take a poll (ask them) and then fashion your offering based on their responses.It is possible to offer both options in one PPM where one could be considered a "debt or fixed return class" and the others an "equity class", so that's not a bad idea.