You’ll develop resilience, leadership, negotiation skills, vision, emotional control, and more.

It's a shared house so they have no renter's rights giving the owner huge leverage and control. 

Like you I also have the RE license to keep some of the commissions and better control. 

That gives them the ability to maintain control over the entire real estate investing process, from acquisition to renovation and then resale or lease and manage the properties in house.

Not sure how you believe they could control their cash flow. 

I would think their loan documents give them the right to control the property after the original owner dies - regardless of who is living there (although I have no direct knowledge of the laws where you live).There are details we don't know here... like if you want the house for sentimental reasons, or because you see the value between what it's worth on the market today and what the reverse mortgage company wants for it?  

Also don’t forget landscaping and general pest control (termites) if applicable.

And given #3 above, it leaves about 20% of rent for all other expenses like property tax, insurance and other PM expenses like leasing fee, eviction fee and other minor expenses like for e.g landscaping, pest control etc.

when your in a fund U have an interest in a fund that then has interest in RE and you are once removed from an control.

Less waste, more controlled environment, less surprises.