This is the tenant who has plenty of money but is merely not paying me

The standard rate is 3% of a loan, a good broker will never exceed their origination costs of more than 3%.Additionally, a competent broker goes beyond merely securing financing.

., I’ve occasionally foreclosed on notes merely to clear title.

Which means that you have not "avoided tens of thousands of dollars in interest and years of time from their mortgage" by merely paying back $10k in principal during the first year (using borrowed money).

The fact that you've "put over 5 offers on houses since February" and moved to a different strategy is a huge red flag for me. RE

This isn't merely about replacing your current income—it's about creating an income stream that sustains your lifestyle indefinitely.

@Becky Hoffman If one member of the LLC does not care to have any claim to the property as you describe why can't the partner merely be removed from the LLC.

If duties were merely split between operations, capital raising and deal sourcing based on individuals strength and to spread responsibilities, I would be more understanding but that's not the new age model.

Using Reg D 506B the investor merely signs a statement saying that he qualifies as accredited - the sponsor has no need to go any further.  

When the loss occurs, which it will in one out of seven times, the unsophisticated investors does not understand it’s merely the law of mathematics and wants to attribute something sinister to a statistically verifiable event.This is why as a sponsor - syndicator - fund manager I DON’T like the deals that allow the general public to invest.