Clearly, these are extremely simplified calculations that assume a lot but we're hoping the overarching model is something that makes sense.

It would also simplify the operation of your real estate investment, reduce your operating costs, and provide a better layer of asset protection.You can, as you suggest, open another IRA for investing in conventional brokerage assets. 

If your bid is the winning bid, your note is payment for property ownership.This is an extremely simplified version, various strategies and tactics can be used depending on whether or not you want to own the property, want to be able to sue the borrower for any loss you incurr ( not possible with residential o/o property in California), or just want the highest bid regardless and don’t want to own the property.Don’t they teach this in California public schools?

It looks like he is greatly over simplifying three separate things.Nevada is a great state along with Montana for forming companies - That do business in Nevada or Montana!  

Seems like and answer to the problem in a simplified way that will provides protection.

Having this “clarity of vision“ has greatly simplified our business and reduced our daily stress.

You seem to be more experienced than me as a developer/PM, but first thing is always to take quantities, if your designs are so preliminary that quantities may change drastically and you're worried about going over-budget you should probably simplify/scale down your design.

I'm just trying to conceptually think about it, and if the cashflows are not reinvested then the whole concept of time sensitive return is meaningless so i feel like it just ends up being your ROI annualized... maybe i'm just simplifying too much...

That's about where businesses level out in the stock market.This is quite simplified, but hopefully sends you in the right direction.

Simplify your Initial analysis.