The fact is that low income tenants live a life of drama that ordinary middle and upper class people don't experience.

I don't recall there being anything out of ordinary when I read through it initially.

That's taxed at your ordinary tax rate. 

If you are already high in ordinary earn income, do you really care about immediate cash flow?  

Just disclose to all parties.Blake, there are many transactional funders, including myself, but most do not provide many options, including anything out of the ordinary such as over 24 hours, with different title companies, etc.

Not doing out of the ordinary.

The argument is that this is essentially ordinary income but that it is taxed at capital gains rates.

Your income from this is taxed as ordinary income plus self employment tax.

Because, for some people, rental real estate can generate a positive tax consequence on the ordinary income.

That way, instead of the underwriting process taking several weeks (as they'd have to underwrite both you and the deal), the process can be streamlined (since they've already underwritten you).Just make sure they aren't asking for any payment upfront -- that's a BIG RED FLAG.As for why you're being asked for so much, I presume it's all the standard information that any professional lender would ask for -- credit report, P&L, balance sheet, tax returns, proof of income, proof of assets, etc.Are they asking for anything that is out of the ordinary?