Any legal issues I should be aware of in this situation? 

Consult Real Estate Attorneys: Attorneys specializing in real estate often have connections with private lenders and can provide referrals based on your specific needs.Engage Mortgage Brokers: These professionals have access to a variety of lending sources and can help identify financing options that align with your objectives.Local Banks and Credit Unions: Establishing relationships with local financial institutions can lead to personalized financing solutions and potential leverage opportunities.By focusing on these qualities and avenues, you can find a business broker and financing options that align with your goals. 

Go as high as you can go legally. 4.

Since you’re in research mode, getting familiar with neighborhood-specific trends will be key, some areas have strong rental demand, while others can be trickier to manage. 

If you wish to network or ask specific questions about your local market, you can go to your local real estate forum and discuss with investors from your area: https://www.biggerpockets.com/forums/86-local-real-estate-networking 5.

At the same time, someone else reduces your debt, and you get to use the tax code to improve your tax situation legally.  

Maybe they've been burned by landlords in the past and are being very careful.You can legally reject them based on personality, facial tattoos, body odor, or other factors, but you better make sure you can prove that it wasn't based on any protected class like race, religion, familial status, etc.

Each CPA will answer the questions uniquely based on their interpretation of the tax law as well as your specific scenario, so I highly recommend having a trusted CPA answer this for you.

@Dallas Morioka what specific help are you looking for? 

To clarify, I didn’t invest in a “fund,” but rather purchased a note for a specific fix-and-flip project.