In others, the "closing" is a meeting where all of the documents are signed and money changes hands.closing costsClosing costs are separated into what are called "non-recurring closing costs" and "pre-paid items."

Standard acquisition fee is 2% of the purchase price paid at closing and asset management fee is 2% of the collected income (paid either before or after the preferred return - your choice).

Surrounding homes are around $200k + with similar plot size and sq. footage.I put in 40k desired profit to cover $15,000 paid to lender plus in the closing costs a point fee of 3% (Agent fees portion)These numbers look average correct?

The sponsor shouldn't get paid out of the CF until the investor gets paid...

FYI: Now that the LO comp rule is in effect it's illegal for a lender to get paid more or less depending on your specific interest rate, so there's no reason not to get you the best rate out there among alt-doc loan programs, if that makes sense, meaning you're not exposing yourself to predatory behavior by being upfront about not being rate sensitive, like you would have been had you said that in 2006.

One would argue that you would be getting paid for all the work you did that they did not, but that is a personal choice. 

You would be way ahead if you paid them 25.00 an hour as a 1099 or independent contractor.It is all a decision you have to make about time and the value of the money.  

Even if you miraculously pulled a deal out of a hat, found a buyer, and it actually closed, it would be weeks before you get paid from it.Outside of robbing a bank or selling drugs I can't think of a way to make $1500 that quickly.

A LOC will allow you to use the funds when needed (when you identify a property worth acquiring) vs. a loan that will need to be paid regardless if you use the funds or not. 

Glad we paid the $275 and are now aware of any and all issues and can be strategic / selective on what to address.