The higher interest rate you pay for out of state notes does not compensate for the higher risk (therefore interest rate).

@Brittney Yang first red flag is it doesn’t sound like he’s that interested in long term holds but the primary reason for partnership is expertise in renovation and secondary reason is balance sheet and income to help get financing.Regarding reason one, I would offer to compensate him for his time in assisting you and have a very clear scope of what that responsibility is.  

I am curious to know what do you think is "fair" compensation for loan brokers and loan officers? 

I only share off-market deals with flippers that I know will compensate me... not other licensed individuals. 

Or in rare instances - compensate your broker directly. - Due diligence.

That way, the investor gets compensated for tying up their money during the redemption period.The exact amounts and timelines can vary by county, so it’s always smart to double-check with the county treasurer’s office or a local attorney familiar with Indiana tax sales.Glad to have you in the community — this is a great space to dig into these kinds of niche investing strategies.

The syndicator raising capital from a base of 100 investors and getting compensated with “carry”, that’s more a business model.  

If the numbers work then that could be a win-win, where he is able to get the rent he wants without the management issues, and you can get compensated for leasing the unit vs trying to collect a management fee. 

If the answer is yes, are they covered by workers compensation & are they licensed, bonded & insured?

I would personally take it but not for less than 40% over to compensate me for my extra turnover time.