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.

By the end of program they own a part of a building in their own community in which their profits go toward their college education.

Can you find someone to loan you the money and split profit with?

you DONT pay tax's when you borrow money.. you pay tax's when you sell  ( that is if you make a profit)

PM is a high volume low profit product to go along with but/sell brokerage services.

You have to have a really great deal to find something in a good neighborhood and then you make a profit, your subs, the PM, the placement, etc... 

That would eat into your profits.