Mostly I'm just spreading the word to as many people I know as possible letting them know that I'm interested in real estate.

If it does, then you are borrowing money at a low interest rate to earn a higher return and keeping the spread.  

Under option 2 your profit spread is not disclosed. 

You don't have a solid ARV, because a spread that represents 2/3 of the current asking price can't possibly be considered solid. 

.- It's a partnership, so P&L are spreaded according to invested percentage.- Minimum share is $500K, but I got special treat :).  

In other words, I make sure there is a positive spread for me in at least 2 of the 3 areas (front end, monthly or back end).

From what I understand and have learned so far, the magic in making the most money is acquiring a property under contract for as LOW as possible, that way the investor can make his cut and we can still make a good spread. 

I bought one last week that had a missing/screwed up deed from the 80's, but three title policies since (and a big spread) so I bought it anyway. 

You can google the locations and use zillow to see how the values are highest close to downtown and spread from there. 20 - 30 years ago all these areas were ghetto.

I've seen it said that mold, asbestos, lead, etc... just spreads the profit margins greater in a very good way!