Passive income such as interest, dividends, royalties, rent from real property, or the sale of an asset that has been held to produce passive income over time are not subject to UBIT. 

again, assuming that the Mentor is participating because it is in his best interest to, and not just getting what amounts to a 50% royalty.

If you have filed schedule E (rents and royalties) for 2 years, then that is your track record for being a landlord.

I haven't used home vestors.I can tell you before jump in bed with any franchise you have to know the good,bad,and ugly.Franchises make money off of the franchise fees and depending on the model a royalty of sale and mandatory advertising fees for national and local branding.When I was in the restaurant business franchise companies run specials all the time on food.Why does corporate do this??

You pay no royalties or separate marketing fees, other than what you actually use.Thanks,Lynn (FL)

Tax sheltered retirement plans are exempted from taxation on gains from passive income sources such as interest, dividends, royalties, rent from real property, or the sale of an asset that has been held over time to produce passive income. 

Not have shareholders who are nonresident aliens5. not be a financial institution that takes deposits or makes loans6. not have more than 25% of the corporation's gross receipts from passive sources, such as interest, dividends, RENT, royalties, or proceeds from the sale of securities.

Licence of the intellectual property rightsa.This clause will apply if a Customer has purchased a Design from the Ready-made Design Store where the Design was sold to the Customer for use on a non-exclusive basis, pursuant to which the Customer was to be granted a non-exclusive licence to use the Intellectual Property Rights in the Design.b.If this clause applies, then upon receipt of payment for the Transferred Design in the form of 99designs Dollar Credits (pursuant to the terms of the Services Agreement), the Designer hereby grants to the Customer a non-exclusive, royalty free, worldwide, irrevocable, perpetual licence to:i.use, reproduce and distribute the Transferred Design; andii.sell, assign and/or transfer the rights licensed to the Customer in the Transferred Design to any person.c.The licence rights granted in clause 4(b) are personal to the Customer and may not be sub-licensed by the Customer to any person.

In some other recent threads I think someone said it is only like $15K to get into one of those, then of course there are whatever fees and royalties, but that seems like a way better deal then dumping $3M to buy a flipping business with no particular advantage over anyone else in the market.

They are not franchises, such as Homevesters, so there are no royalty fees, split of profits on deals, monthly marketing requirements, etc.