In general the site is filled with pretty independent folks that dislike others controlling their capital formation process and thus my prediction is that technology will largely allow active operator/sponsors to bypass the intermediaries in time.  

Any company operating without one will fail in no time. 

You could also be cited and ordered to appear in court.These guys love to roll around town and camp out across the street with cameras to film your jobsite activities to look for violations.  

I've owned and operated a number of businesses over the last 20 years.

Use your Net operating Income to pay back the Private loan.  

It  may be invalid due to age, it may have been paid and never released, or may be gone by operation of law via the tax sale.

If so and if you want to take a salary, it will need to fall under the real-estate operating company requirement in order to use your retirement funds without paying taxes. 

I understand that the first couple of years would be tough but once I start to add in the apartments that get renovated and then store fronts my monthly income jumps to $8,875.So when I do the math with this number $8,875 monthly income with a 5% vacancy rate and 30% operation expenses + my mortgage ($1,400) for the construction loan my cash flow total is $4,502 a month which I split with my investor. 

Are you talking about pre-tax profit earned through investments or pre-tax profit earned through operations?

Most investors who buy turnkey properties are looking at how the property cash flows and what their cash on cash return is, if they pay cash (total annual income/purchase price) and/or the Cap rate (Net Operating Income/market value).