Is it within the rules to do private lending for a property that my father in-law holds the title for? 

This creates a WIN-WIN Situation and gives the Realtor incentive, to work harder on your behalf. 

Perhaps we could create a micro-community and meet up in person :)3.

One idea I had was to sell them, or create an agreement for some type of payout for any deal that goes through. 

Create a note, use a title company to close the deal.

Our mentor promised us support, guidance, and a reason to create a team with him.

Looking to utilize my experience, connections, skills and qualifications to grow a network of investors, developers and contractors to create an (or several) eventual company(s) to build strong communities.

For instance, you have the 70% rule for rehab and fix then you have the 2% rule and then 50% for buy and hold these are some guides on how to determine if a property is worth buying.  

Is their a rule of thumb for this sort of thing, percentage wise?

Also some new landlord rules up in Seattle are making it an unattractive market.