@Michael Guzik  @Tim Gordon clearly you have both struck a nerve with your posts, which is a sign to me that there is merit in examining the question.

I have nothing of merit to add about the fund that hasn't already been said. 

Spoken like a true ... someone-that-doesn't-know-a-thing-about-SEO.Listen to me carefully... and I see people say this all the time and it is quite frustrating to me.Not because YOU can't do it means the strategy is bad or has no merit.

While I now understand that it isn't as cut and dry as I had initially thought, the numbers you gave seem to be vastly over simplifying the situation.I do also understand that there can be merits to wholesaling and that you do have valid arguments, I was only refuting that one point because I felt there wasn't enough context surrounding those numbers.

There is some merit to the "set up shop in Nevada" way of doing business, you just need a great attorney to help you through it. 

A quick and dirty way to evaluate the merit of a deal.You can't tell Aaron how his returns are based on working a real estate job and are not comparable to what you are doing when you have to reinvest the money you are getting as well.

However there were a small handful of tax attorneys in the room and they opined as how they could see that method having some merit in a perfect storm of scenarios, judges, plaintiffs and defendants.  

I'm not sold on the merits on buy & hold. 

Second, unless there is a good amount of money moving through the business, you will likely need to provide a personal guarantee until the business can get credit on it's own merits: length of credit history, payment history, amount of credit available / in use, ...Providing a personal guarantee just means that if the business defaults, the creditors / lenders will come after you.

Individually, each transaction on its own merit is legal.As I stated in a previous post, investors SHOULD consult their RE attorney who is very familiar with SDI's and the IRS rules and guidelines, however, they may still not be able to clarify for a 100% fact one way or the other and the ONLY way to do that (in my opinion) is to ask the IRS.