Pace said repeatedly that he only does deals with his own community (and apparently you can get bonuses for referring new members) which infuses new capital into the community continuously.  

Refer back to Roger's post for the specifics. 

You "just" need to understand the risks and rewards and decide if that works for you.

I’m looking at a couple of deals at the moment but none seem to match what you are referring to.

Detailed Due DiligenceConduct in-depth due diligence, including background checks, reference calls, and site visits to assess the sponsor's operational capabilities.

And the elite Realtors that might have some angles to help you will want some type of agreement in place so that they get their reward guaranteed....

Basically this is referred to as a "purchase money 2nd lien"...but with it you can refinance right away, no waiting.Hope all of that makes sense.

You gave me a lot to think about, I am confident the rent can be increased and have a contractor/property manager lined up who has inspired a lot of confidence and comes with good references. 

What type of red tape are you referring to?

Yes it is just specualtion, but if you are basing your future on guaranteed appreciation, imagine having that huge amount to pay every month and NOT having the appreciation to reward you at the end.