They promise to literally hold your hand through the entire process including tax advice from CPA's They guarantee that you will make you initial investment back at a minimum.  

(How did you get a loan your did not personally guarantee?

Going straight to a traditional lender for a mortgage may seem simple, but this approach will not always guarantee the best loan terms.

@Randy Smith, and I will add the not as fun part, but @Dave Foster can probably add in the detail that I certainly lack.A 1031 is not guaranteed to shield all taxes.  

You just need an offer letter stating what your salary will be (bonuses dont count unless they are guaranteed).

I agree with @Bob Stevens - I am never paying someone 1% of my "managed" assets with no guarantee of performance.  

Not sure where the 6.48% comes from either, but if the “private lender” is saying you have to pay that up front as a tax before he can release your loan funds I can pretty much guarantee you're being scammed. 

But I realize that’s not guaranteed, I’d adjust as needed as the dates got closer if they weren’t booking.  

Investing of course is never guaranteed, so there's an amount of due diligence in order before buying a property somewhere.

i get the premise they can't file a lien on a property, but how does this also protect me from guaranteeing the job is done without pre paying?