That may be a waste of time and money.But there may be a way forward (even a profitable one) depending on your situation. 

It usually appreciates slowly, and the profit will be taxed at capital gains rate, which can be addressed with a 1031 exchange, outside SDIRA. 

You're real estate commission, escrow costs, holding costs (debt service, taxes, insurance utilites) while you are fixing it up and getting it sold will more that chew up any little margin in it.

Those that can't buy now or at the margin will have to buy sometime else that fits their wages or not buy.If wages are part of the driving forces behind a rise in inflation, then consumers and investors will still continue to buy at the limit of their income.

@Steve Vaughan  I think the reason they do is for some reason they believe what they hear that the way to buy rental real estate when you have no money.. is to wholesale first get some money then buy rentals.when in fact wholesaling or buying and selling deals quickly in any volume takes a lot of skill.. significant marketing capital.. and most of the time they are breaking the real estate laws.And you have all sorts of HOW TO trainers selling their boot camps and of course they lead with you too can get rich with NON of your own money..theoreticaly that's true.. but not really reality in the real world..not to mention some areas simply do not have enough distressed real estate to make it viable at all.other areas like urban cores and cities that have seen hard times much easier to at least snag low value assets no one wants.. much of this is done is rough areas.Granted there are always hoarder houses and other fixer types in the nicer areas but its uber competitive for them.. and generally there is not enough profit in them to feed all the mouths.the wholesaler the buyer the buyer having to use hard money the contractor sales cost etc.. that in my mind is why you see so many post about HEY wholesalers don't know what they are doing..

You have to bring in a 20% down payment and they also share in the profits.....it sounds very expensive to me and not like a model that would allow you the control you would want to have?

All making profitable real estate investment that much harder. 

There are 2 main reasons for this:It allows the investor to cash flow more profits to use on things right now. - so if they wanted to reinvest the profits into another property or use that money for another purpose. 

Those options either marginalize the custodian's role or completely eliminate it.For CA residents, there are some additional considerations because of the state's franchise board tax.

Most of the time you cannot enter/ walk around the property.Calculate a max offer based on amount owed on liens, cost of rehab, closing costs, and with a margin for profit.If you get the house and there is a tenant, you must honor the contract (if you are not living in it) up to one year.