If it is structured as a traditional LLC, then while it does pay out the cash flow generated, it is not categorized as dividends for tax purposes but considered nonpassive income.

I live and invest in Monroe, Louisiana, which has a very high percentage of the population being considered to be low income.

As a percentage of the total value, reporting costs tend to be much higher for smaller balance IRAs than they are for larger ones.

A good percentage of those orange and red areas are actually good rental areas.

You'll likely need to get creative to structure their return in a way that the bank will allow (likely a preferred return  where they are not "guaranteed" fixed timely payments but instead are promised the % return but it is only payable AFTER the bank is paid and when the cash flow allows...you still owe them the agreed upon percentage but it doesnt have to be paid out until the property can afford it.)...this is just one idea...there are literally thousands of ways to skin this cat! 

What is the percentage of down payment, %10 or %20 of market value of the house? 

Thanks Eric, do they charge a percentage of rental income?

How many years did you have to pay out that much cash?

For smaller properties, the PM is collecting a lot less, for a similar amount of work, even with the larger percentages.

They will require anybody with over a 20% interest to supply credit scores and net worth requirements and this blows a lot of deals up.If one of the partners has horrible credit and low net worth, make sure you make him either a silent partner or low percentage ownership on paper.If you getting lending, you will need one main llc, with operating agreement that spells all this out.