Since your preference is buy and holds plus flips, I added the below links for your review of these REI niches. http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property)http://www.biggerpockets.com/renewsblog/2014/01/07/flipping-houses/ (step by step guide to flips)To be more successful, you simply have to work on the other elements to progress your REI pursuit.

Structure their ownership as preferred holders with a return of 10% to 15%, (preferred pay out).  

@Ryan JohnsonWelcome to the vibrant BP community, where you will find like minded individuals committed to REI and also helping others succeed.Seeing that you didn't list a REI area of interest, I added three of the most popular niches below for your selection of one or all.

I am a newbie to the real estate investment scene.While still in the education stage trying to figure out a niche, I would love to hear from any wholesalers or flippers in the area.

.:) My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust.  

So, I added the below links on this niche so that you can review the guide and listen to the podcasts to get a jump start on your REI journey.https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)https://www.biggerpockets.com/renewsblog/2014/10/09/getting-started-real-estate-wholesaler/ (BP Podcast 091 Wholesaling)https://www.biggerpockets.com/renewsblog/2013/10/31/wholesaling-podcast-mike-nelson/ (BP Podcast 042 - wholesaling) http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meethttps://www.biggerpockets.com/alertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/inviteshttps://www.biggerpockets.com/forums/categorieshttps://www.udemy.com/biggerpockets-real-estate-investing-course/ (video with 64 lectures and approx 6hrs of material)https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)REI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/REI books suggested by BPershttps://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REI)http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?

Can you guess which ones I prefer?

Also, he seems reluctant to kick them out (My guess is that they are his family friends.) and would prefer that they stay.

I prefer to negotiate openly and honestly on price before getting a property under contract. 

Guy Gimenez what would you prefer an investor/buyer do?