Brian also gets a management fee for each property.

You could easily post your vacant lots on flat fee MLS like list with Freedom it will cost you about $99 bucks or something.

I am in the process of using them now but they charged me a higher then what I normally pay in appraisal fees ($750 is what they charged me) and then they added a processing fee of $90 after I paid the $750  (and they didn't tell me there would be any other charges yes I asked) and now they need me to set up an LLC after they knew i was doing business as a sole proprietor or take 10% less LTV on my refinance which won't give me the capital I would need to make my next deal work.. so I don't recommend them at all, i don't know if they are a "full" scam but they definitely need to work on their process if they are legitimate. 

The challenge you're hitting is common at this stage: scaling efficiently without overleveraging or getting squeezed on financing.With your portfolio and cash flow, it might be time to look at portfolio lending or DSCR loans that allow you to recycle capital without the heavy rate/fee hikes that come with low down payments.

The main drawbacks are the fees/rate & the prepayment penalty. 

What place am I in the capital stack?

They offer deceptively cheap management fees, and fund themselves through very high "add on" fees that they do not share with the client.

This will necessitate the production of a Private Placement Memorandum (PPM), Operating Agreement, and Subscription Agreement.Current cost are $8,000 to $15,000 for legal fees, inclusive of Form D filing with SEC and notification filing for the states the initial investors reside in.

Whats the fee? 

For example a fix and hold would still require a 12.5% profit (after all fees, points, interest, etc) in the event of a sale.