I think OP was speaking about the amount of payout insurance gave, vs the vendor quotes to make full repair, in the time there was a thing that happened, say hail damage to a roof and the roof need replacement. 

This brings our payouts to where they need to be.

(Track each property or owner as a class/location, automate owner payouts, sync reimbursements, and keep Amazon/VRBO expenses tied to the right property.) 

I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

He has no skin in the game. 

I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

These pay out monthly and I've seen yields of anywhere between 8%-14%.

Quote from @Daniel Bullock: Im new to the RE game, so this might be a basic question - what’s the usual timeframe private investors expect to get their money back?

A friend of mine received a 7 figure pay out...but that was for a loft in Tribeca where the the owner had been trying for many years to get them out. 

Absolutely, Steve private money has become a real game changer, especially in today’s market where speed and flexibility can make or break a deal.