From my understanding doesn't seem as though it would pass through, rather the fund would benefit and therefore returns would be better.

My understanding is profit from lending is considered "taxable income" and is therefore added to your income and subject to your normal tax rate after all deductions, etc.

In most of those cases, their broker took a high fee and the investor didn't end up with a great deal.Here are a couple of things that are a tipoff you are not working with a broker with your interests at heart (1) they want to pull your credit before having a conversation, or (2) they send you a long list of things you need to provide them before learning about you and your deal.The conversation should start with why you are interested in REI, then understanding your strategy to get there.

In this era of increased rates, obtaining properties that will produce a good return are harder to find and often involve quite a bit of work.  

.: I am trying to learn and understand... someone told me that its not just size of the home or level of the flip that determines profit, and that in some markets, what is considered a typical profit is 300k based on the 70% ARV formula.

When you mentioned selling and other investors being involved.

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

Undoubtedly, your involvement has lead to increased business funneling to Obie...Two questions:Does Obie insure free-standing mobile homes (without land)?

You're smart for recognizing the importance of building relationships...very few wholesalers in my area understand this. 

Make sure you understand the auction process and are prepared for any unseen issues with the property.Auction Considerations: With auctions, pay close attention to the condition of the property, title issues, and financing restrictions.