. ($300k has to be earned to net $250k.) so you’re looking 5 years of zero vacancy and zero capex to break even.

I like to believe I earned their trust for when I need to borrow from them again.

I would rather earn $2000 per month at a 12% rate of return than $500 per month at a 1000% return.

I would charge them $5,000 with the ability for them to earn back $2,500 and I'd have a call with them every other week to guide them on how to find deals and money lenders and how to get the properties fixed up and get them refinanced, etc.

It’s like I have a bunch of clones out earning money for me.

Quote from @Timothy Villa: Hey y’all just heard about this community and wanted to utilize it to grow more knowledge in how to have real estate help me with earning passive income.Welcome to BiggerPockets!

To go a bit further into what Dmitriy mentioned, since your IRA earns the income the tax treatment is specific to your IRA.

I recently analyzed an asset of vacation cabins - where the seller would earn 23% ROI over a 5 year term.   

If the credit screening costs $25, then you earn nothing.I believe there are exceptions for a higher fee, but you have to stick to the actual cost of the screening.I would talk to an attorney before charging more than $25 per applicant.

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.