He is currently a travel PT that makes $37k pre-taxed but after including all his stipends, his annual earnings are  closer to $95k-$97k.

Moreover, he, like the Reg D multifamily promoters, lie about what they owe, lie about what the earn and lie about what they own.

Well, three top reasons come to mind:It will allow you to deduct their earnings on your own tax return.It is required by law for any person to whom you paid at least $600 in 2023, total.

I get the purpose, I understand how it can help some newer folks earn extra side money, BUT I feel like there should be way more discussion on how to protect the lender, how much time it will take, what all is involved, nuances, hurdles etc and discuss those more. 

Someone trying to earn 4-5% return they could get from a bank cd?

Then, with what they don't cash out, they can put into a centralized lending platform, and earn up to 8%.

There are many new developments going up but traffic in some areas are horrific, especially at peak. 

Now the paper losses are still able to be realized via the holding companies while the management fees are earned tax free?

Being that I get taxed at a higher rate for wage earnings then i do for capital gains I actually take home more for way less work.

Before I try to sell the idea to them I'd like to have the best data I can on potential earnings, upkeep costs, likely occupancy, and other points like that.