----I know al this because I'm self employed in marketing (not RE), but the compound power of time is there across every industry and career.

This is ALSO an After Tax Return of about 10% thanks to the beauty of compound interest......................................But, what the first scenario does NOT take into consideration is that rents RISE over that 30 years.

I like @Michael Anderson's answer.Two big advantages you can offer to local investors as a private lender are 1) reliability of execution and 2) speed.Meeting local investors at REIA events will create greater trust than simply advertising your services online.People are rightfully skeptical of private lenders, so meeting real estate investors in person and letting them know you are local and actively lending is a great first step to gaining trust.Once you execute well on several deals, word-of-mouth, the most powerful form of marketing (and the only one that compounds) can provide you a substantial tailwind.Best,Michael

Phase 2: At traditional “retirement age,” I will have the option to take distributions from qualified assets I’ve built up over the years that will have compounded nicely over multiple decades.   

I recommend "The Compound Effect" by Darren Hardy and "The Talent Code" by Daniel Coyle.- Consider joining a team for 1-3 years.

(A suggestion: if you don't already, I strongly recommend using a late fee that compounds daily.

At 10% ($72), it would take 7 years to bring rents to market (this is simple math that doesn't compound rent increases but also assumes no increase in market rent over that same time, so it's probably close to a wash).  7 years is unrealistic and makes no business sense.  

The tenants in the creative houses also have access to the compound and can interact with the other creatives. 

Furthermore, I was thinking I could even pay off a nice chunk of the mortgage by using my own income from my 9-5 and beat the interest from a loan before it compounds.

The beauty of compounding returns.