If you are aware of any, would you recommend it or do you prefer it the old-fashioned way: checks?

The feedback I've received is that people prefer to have a live-person at the home so they can ask the agent questions or they just don't feel comfortable putting their CC info on the site. 

I prefer buy and hold.

I prefer a solid 20%-30% down payments. 

This one is personal preference, but I would never work with an agent without that agent being able to oversee, or seamlessly hand-off rehab work, and property management.  

As I eluded to in my post (or attempted), I live 40 miles outside of Mpls and prefer to keep my first property close by for simplicity of management and control. 

As a realtor, I have a preferred lender that I strongly recommend my clients work with.  

Is there anything like a short explanation on how we can sell or create a second class share, preferably non-voting shares in exchange for financial backup up to 500k?

If you have a 12 unit that is generating positive cash flow, and your bank is telling you they prefer to gamble on a flip... that's silly.

Once you calculate the actual value of the home based on the comps, you take 70% of that (or whatever your local end buyer's prefer) and subtract out the repair costs.