One factor that plays well for Memphis and investors who purchase here is that about 45% or so of our population here rents making it a place where there is a large tenant pool. 

I have never had a pool table on my own and yesterday one of my tenants asked me if it was ok to install one in the basement of a SF.

They are less than 2 miles from house and in great neighborhood. 2 pools and fitness/clubhouse.

Many of the people/example you mentioned, purchased liabilities such as put in a pool, bought a car or boat, etc.

I wil be buying a home with a indoor inground pool.

Transitioning into this full time would be a smarter move than jumping into the deep end of the pool.

They didn't know much about legitimate broker practices on pools of loans regardless of performance.

Many private lenders in my area use a licensed mortgage broker to place and/or pool their funds so they can charge rates way higher than 10%.The 10% cap in MO that you mention appears to be about who can charge more than the usury rate, and not based on the property use or the borrower.

It sounds like you could do well by following your heart & the sound wisdom of those who've put their OWN money 'in the game' of buying notes.If you would care to listen, I have my take...I took a quick look at FCI Exchange & it seems like they have an interesting platform but because I've never bought a note thru them I can't give you any advice about them, however I have a different take on buying notes - if that's what you really want to do.There is a lot I don't know about the note business but I can tell you what has worked for me.I buy notes secured by commercial real estate in my own back yard.

If you start pooling your available cash and leverage, your 401k will become smaller in comparison.