I would focus on coaching that helps you become a local expert and build relationships with sellers, not try all the BS marketing techniques.

I've lost count of the number of RAD investors who posted in the BiggerPockets forums about their "hard money loans" and then having their distributions "frozen".

You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

In this guide, we’ll explore five essential tax mitigation techniques that every savvy investor should know.1.

And then also do you typically repay each partner their upfront costs from the profits before then distributing profits?

Any paused distributions?

With less experienced or just poor planning operators, it isn't uncommon that they spend years distributing all the cash out to the owners, and then the time comes for a multi million dollar refresh to maintain the hotel brand, and no one wants to cough up the money back into the entity.

There are actually THREE kinds of subject to transactions1- subject to existing mortgage without lender approval2- subject to existing mortgage WITH lender approval3- subject to existing mortgage as part of a seller financed wrap around mortgage.with #1 and #3 it’s in everyone’s interest to utilize a third party servicer, who collects and then distributes payments.  

@Justin Landesman's comments are critical about not funding without being on title and/or having a written contract about the distribution of profits.How much do you think the rehab budget is?

Sponsor is doing a capital call and pausing distributions as they have a loan coming due and realize they need $3M in order to refinance the loan.