I have a W2 and can survive off it, so I never really needed my RE profits to spend on myself.

Have you calculated what your (monthly nut) is you need to survive business wise and personally?

Just trying to sort out an assumption so I can plug it into the model I build and calc post-construction LTV and sale assumptions.

This is basic case where bad sponsor doing high risk investment in bad times …I was one of the small investor for very large SF rental fund out of Florida but got litigated by SEC three years ago and handled by receivership court now.three years later we got at least out 80 percent money back LOLBtw , every new kid can make money in 2016, but if they can survive 2022 that’s your guy :)So don’t afraid to make lawsuit against these company …Carlos seems to be more experienced in this than me, so feel free to disregard my comment at your discretion.  

I guess they think these investors are accredited so a fee structure is a good model. I

@Ryan PhuSince you're new to investing, you have now been introduced to the guru model. I

Your model is awesome. 

His model is the exact opposite of what most gurus teach. 

What do you think the odds are that a strategy like this will survive the next economic reset? 

I have warned countless people that the "new", "Cheapest", and "shaking up the insurance market" carriers typically come into the market under priced, have a wave of claims, then they either jack up premiums to survive or fire their staff to keep heads above water.