the new users will have to create merchant accounts and they will be live/workable ones. 

Other than that, if your numbers are accurate, that's a workable deal in my opinion. 

If it is based on actual performance AND has a proven path to push that upwards to higher profitability then that's a bit more workable, but if it is already stabilized I'd make it a hard pass.

Then either the investors or I as their agent call the city or county to verify ordinances and decide if it is something that is workable.

The formulas here on BP are not workable in every market.

.* Not checking the floorplans and layout to ensure that they’re accurate and workable, leading to considerable expenditure to correct it.* Finding out that the property has foundational or structural issues.* Underestimating the cost of repairs.* Underestimating the work required.* Not considering whether it’s an area that people are likely to want to live in.

If it sounds workable fill out their loan form and they should send you a terms sheet to consider.Looking at the HMLs listed here on Bigger Pockets for CA might be a good start.Best wishes on your endeavors. 

Sure HML are a proven solution as numerous BP members here can attest but it needs to be part of a plan with a workable exit strategy.

If you have a different business solution than HMLs that is workable for specific investors, then by all means dispassionately advise them.

But they are still not workable.