If everything works out in my favor and they do go down, I might even end up making money off the deal if I rent the "efficiency".I know this is an extensive post for a possible basic question but as time is limited I wanted to make sure you experts have all the details of the situation and how I am thinking.If besides of my previous two questions you have any advice/warnings/questions/etc please feel free to let me know.

I always wanted to invest in real estate because I grew up with the concept of "people always need a place to stay".

A debt deal with added downside, that is.I'm not sure I understand the concept of the sponsor retaining 80% ownership if the investors are contributing 100% of the capital.  

Retailers end up selling to end-users.As a wholesaler you are basically the middleman in the transaction.

Basically, if I read this right, you add +5% on top of any money you take.

The real estate is effectively inventory in a sales business, just like refrigerators or stereos.Passive sources of income such as interest (i.e. hard money lending), rents from real property, dividends and royalties are not subject to UBIT.This concept is documented in IRS publication 598.The ROBS program is an entirely different structure as compared to a self directed IRA.  

I've basically just been a sponge for the last month.

It kind of feels like basically just filing the papers and not much explanation behind anything.

We basically don't have a back yard, but so far, stopping by the park regularly for our 1.5 year old seems manageable....

I've *visited* some older homes - a couple from around 1900 - but I didn't own them or live in them.The first thing that comes to mind is structural problems, like with the foundation or basic framing.  147 years is a long time for frost, water, wood rot, termites, etc to do their thing.