In your scenario, the author in year 10 would make $25k (plus nominal inflation-adjusted interest) and the cash reserves would be lower than in year 9 by $75k.

That is one of the benefits to belonging to large groups, with the downside that there is a nominal annual membership fee for both of those groups.  

I nominate Ben Leybovich I hear he is looking for work.

HML on the other hand are all asset based, no min credit or financial requirements (and if there are some, they are very low requirements).

You generally have to gut it out with equity partners and private or HML to build your book of success's and at least 2 years of profitability before a bank will even take a peek at you.now there are banks that will do owner occ construction to perm loans.. like here in our areaits Washington Federal.. you may google them and read about the program then see if someone in IL does the same. the other stuff is just vanilla  federally backed loans no mystery there.as for your arch fee's as equity.. we really don't see this.. counted as equity at least in our area for resi construction as the fee's are quite nominal  IE 3 to 10k to get a finished plans for new construction SFR's up to 4 plex's.

This works in a state that provides for only a nominal fee or tax on the transfer of property to a partnership or LLC when the transferor controls the transferee entity.Q: In any case, once these properties are theirs solely, should they continue to be held in name only but with high insurance polices as they are now?

It’s such a nominal inconvenience that should make the rentals better.

There's a nominal charge for the General Meetings if you aren't a member, but the other events are free.  

A GC would be good, or perhaps your local REIA has someone who will do this for a nominal charge.

I would assume that if the owner is open to selling, I could simply pay off the taxes (there isn't a lean yet) as a part of the sale and then give the owner some nominal amount of money for selling?