You gain your liquidity back, but you'll carry the note for 6 - 8 months probably, but the return here can be substantial b/c you were in under market to begin with.

If an investor is not "actively" aiding in the pursuit of the return, they are considered passive by the agencies and if they are passive then you need a TON of various documents that outline what exactly you are doing, your investors have to be checked to see if they are accredited or not (that means they have 1 million in liquidity), if they do not then you need extra disclaimers and documents. 

There’s a stronger sense of control and liquidity, which is likely why more financially engaged communities might expect it to rank higher in perceived value.Real estate has huge potential—but you're right, the value is only as powerful as the owner's awareness and ability to leverage it.

You can easily tag each transaction using categories that synch to your Schedule E for tax time.

And, you can even get into publicly traded options too, that likely have better liquidity, although you may lose some potential tax benefits, depending on structure.At the end of the day, every investment has trade-offs and market cycles. 

I think the lawyers gloss over the fact that the homeowners will still own the property after and have to do something to liquidate it, or it will have to foreclose - which could take years. 

I only have $20k of available liquid funds.

Lastly, putting 20% down on a larger property could be an option, but you'll have higher upfront costs and less liquidity, so make sure it provides solid cash flow.

BaseLane looked good and thought about it but I saw they charge for e signatures.

The fundamental reality is the "E-Z" market is gone, kaput, history.