These pay anywhere from 3-7% annualized cash distributions, often paid monthly, and offer growth on your invested capital upon closure of the fund, usually 5-10 years hold period. 

Purchase price: $1,400,000 Cash invested: $400,000 Financial Highlights:Purchase Price: $1,400,000Price Per Door: $58,333All Units: 3 bed/1 bathAverage Rents: $700/mthMarket Rents: $1,100/mthRenovation Budget: $240,000Refinance End of Year 3 or soonerAfter Repair Value End of Year 3: $2,426,000Value Per Door: $101,000Valuation at Year 10: $3,630,000 (5% appreciation)New Loan: $1,819,000 (75% LTV @ 6%)Net Proceeds: $454,500Initial Capital Invested: $400,000Remaining Equity: $606,500Ongoing Cashflow Years 4+: $70,000/year approxQuarterly Distributions Starting Q4 Year 1Additional Details:Strong cashflow year 1-3 before refinancingAll invested capital repaid to the investor by the end of year 3Reno costs provided by LenderStrong boots on the ground team in placeLandlord-friendly marketTotal Raise: $400,000Minimum Investment: $50,000GP/LP StructurePartnership AgreementBuilding Specifics:Number of Units: 24 unitsBuilding Size: 33,393 sq. ft.Unit Mix: (24) 3-bed, 1-bathFor more information, visit www.venturecocapital.com.

Further, he can go online to any one of an increasing number of crowd funding sites offering investment in both secured and unsecured loans at 6% to 36%, again depending on risk factors, etc.I have found that the "competition" for the private loan seeker is not the interest rate paid by banks, its the return provided by other at risk investments, such as equities, bonds, derivatives, REITs, etc.  

And then upon the sale of the property, that member takes a distribution of the entire amount of their initial contribution, plus whatever additional percentage we agreed to?

From my understanding, there is going to be required minimum distributions (RMD).

It also doesn't take into account the distribution of class within a city (A, B, C) or unit type (SFR, MF, Condo). 

Similarly, you can only use 75% of the income derived from rent to meet the debt-to-income qualification.

He is wanting to retain 50% ownership in the property and its distributions.

The only things that happened was I got put on his email distribution list and probably got dumped into his lead generation database.My professional opinion is to stay away from these so called educators.  

He is wanting to retain 50% ownership in the property and its distributions.