A couple things to note if you are going online to look for private lenders... there are differences in expectation depending on who's calling themselves a private lender.First are the true private money lenders that lend their own money from a retirement account or want to put cash to work and earn interest and points to local investors that they know and trust.Next are private lenders that have raised capital for their fund and underwrite deals based on more stringent criteria.

Instead of holding the paper to term, these lenders are looking to earn the up-front fees before selling the note in the secondary market.

People on the sidelines will panic if there seems to be a steady upward trend and demand will surge over the short term. prices will peak.  

If so, to overcome this problem, could we form an LLC and segregate the equity from the share of distributions (at least until I've recouped my initial investment/ earned a healthy return)?

C-corporations have double taxation (tax on income at the corporate level, and tax on dividends when earnings and profits are distributed to the shareholder/member), while S-corporations are flow-through (so no double tax).

. ($160k+$50k / $300k = 70%)   The reason behind this (especially for flippers and builders) is you need at least 30% margin because that money is considered earned income when you sell short term and by the time you pay taxes you really are not making as much as you thought.

If so, to overcome this problem, could we form an LLC and segregate the equity from the share of distributions (at least until I've recouped my initial investment/ earned a healthy return)?

My take is being a sponsor in a syndication is more about building wealth than earning a living so you have to have something else set up to earn a living, at least in the early stages.Cheers...

The good news is, as an agent when you do marketing your marketing is twice as effective because you can offer solutions to sellers that have the means to fix up their property to earn your commission, or to wholesale it to the other investors you've networked with if they are in distress and motivated to sell.Couple of notes:1) Great for generating your list and learning the area, but how you follow-up on the leads is the key2) Time-consuming but can yield leads if you can process 50+ new deals a day quickly, once you're familiar with the numbers.

An average interest-earning bank account will pay between 0.01% and 0.50% interest, which is less than the current rate of inflation, which was 6% in 2021.Inflation outpaced what a savings account pays.