Interesting in my 30 plus years of HML lending I have never made a loan subject to a judgement.. you as lender would be put into second position and the Judgement holder could if they wanted to do a sherrifs sale and wipe you out.. the real benefit to me is landlords pulling credit..just my experience and who I write my escrow instructions..  

.- I have done this with commercial lenders, but I had to have the down payment first, and then the seller 2nd mortgaged essentially reimbursed me.- The bank will use the lower of the appraisal or purchase price for their loan. 

The irs can say you are getting a benefit and this it is prohibited.

It also has numerous benefits like low CapEx and Repairs.

Home Warranty companies are essentially selling you insurance and they have an incentive to deny claims. 

There is the positive cash flow while having a tax loss benefit too consider with this method, but if you 'buy and hold forever' (somewhat our plan also) there comes a point where with rising rents and declining interest payments when that tax loss benefit goes away.

This jist of the rules are no mixing with disqualified parties, which essentially mean linear relatives: parents, grand parents, kids, kids in law, grand kids.

They also get  30% split of profits above 7% annual return.The 1.5% origination fee is a commission essentially for bringing the deals to the investors and is paid as equity in the deal, not cash.My questions are these:1) Is an origination fee/commission standard for a scenario like mine?

What's the value add or benefit to them?

Currently, I've just learned of bigger pockets and listen to a podcast a day during my workout and will be looking into other benefits of the site.