I was conflicted on DR's adamant position against leveraged debt, however, having a degree in finance and economics I believed I had well balanced approach.

On the other hand, a good passive investor hires sponsors who have years more experience than they can ever hope to achieve.So again, this is why I feel a balanced portfolio needs to have both types. 

Some people don't have financial situation, nor have the bookkeeping to track or maintain it.Again, I personally find it very stressful just thinking about living that way for the life of the loan keeping the lowest daily balance possible. 

Then after they take their fees, and any repair costs for the month, I get direct deposits to my account of the remaining balance.

They are unable to give you a balance or ledger report when there are repairs on properties.

This typically comes into play with big banks (Chase, etc) who are buying the loans to place them on their balance sheet.

This helped me get the max LTV on a high balance loan. 

This means there are no checks and balances to ensure all transactions are entered correctly.

It's work to get these two to balance out - if working with small sums, I don't think it's worth it and I'd rather invest it more passively. 

This leaves a smaller balance disputed but if you do not pay them anything until its resolved, it could lead to issues if it goes to court.3.