The chances of you taking $150,000 and turning it into enough passive income to be able to live are as likely as you taking $150,000 and putting it in the stock market and living off the principle. 

Same principle for rents.You posted this under land and new construction.

@Jay Hinrichs I haven’t bought this guys course but I have done this strategy - the 30k to 90k seems aggressive but I have done 25-50k spreadsYour premise of this being ethical lies in the fact of their ability to fix up the house it seems.

Some, maybe another 20 -25% are honest and ethical.  

If the principle pay down is over $500/mo at least you’re still “making money” and actually a little more every month.

If you have mastered RE principles, assessing the value of the collateral is fairly easy. 

Not every person reading our conversation will have almost 3000 posts.I think it is possible to operate an MTR arbitrage ethically.

Also, asking for exorbitant fees up front to provide a term sheet is not legitimate or ethical practice.  

Flat fee can work well for people who are knowledgeable in real estate principles and law, have experience negotiating deals, and have time to devote.  

Read a text on real estate principles, law, and finance.