Most work like this: Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV)100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

(check page 7 of this IRS Pub)Something that's non-passive and you materially participate means you can deduct those losses up to the excess business loss limit. 

I would greatly appreciate any guidance or advice starting off with this business model.

Thus creating a monopoly that I don't know how to get out of.I've worked years in this industry from the PM-end and never seen anyone try to bill a percentage off the security deposit and, though a little digging is showing me it CAN be done, it seems like bad business.

It makes lead management way more efficient since they get to focus on people who actually want to do business. 

You will get a ton more business, and their fees are easy to make up for...

after alot of procrastinating (like since I started this thread) I was pushed to write a business plan for my dreams in RE and Architdcture.

I'm self-employed and did not know if my business was going to be shut down due to the virus.

It’s just part of the game**They have multiple leads & opportunities in play- If you’re banking on one contract to make or break your business, you’re already losing.

But guess what, rates WILL drop in the next few months/years and most markets will explode after that IMO.If I had 25K I would look into B or B+ (specifically with schools above 5 greatschools rating, and moderate to low crime rate confirmed by heat map and frequenting businesses there) areas within 25 minutes driving distance from my home for a SFH.