The benefit to the seller is that they don't receive all of their capital gains in the first year, but they will pay as they receive their money. 

I am not able to determine your purpose in posting this, since you did not also offer solutions for the seller or for the investor.The situation does not unfold when the homeowner receives a solicitation, as the article mentions...it begins when they are late paying their obligation to their lender.There is a timeline to a bank beginning foreclosure.

I had replacement coverage insurance and received about 300K to restore the house.  

Since you haven't received the funds yet, you cannot claim any loss for 2024.If you receive the 10% return of principal in 2025 and the investment is officially terminated or sold at that time, you could potentially claim a capital loss for the remaining 90% on your 2025 taxes.

I just received the appraisal back and the house appraised for much higher than even I expected ($407k).

My wife and I met with our friends, received advice and guidance from them.

As the largest investor in each loan, we do receive the points at closings. 

It seems like the real support you would receive from Pad split is them helping find the occupants/tenants And them processing the rent.

The last update I received was 12/5/2022, that I asked for.

Would it be legal to wholesale a family members home (est. 1M), and receive a fee for the wholesale services?