This person may be referring to a single property as a single point of failure.

As Joel suggested most small businesses like that will fail so build for success but be prepared for failure.

That's setting yourself up for failure.

looking for short stories of success and failure when getting into real estate full time..

As I sit here thinking about creative ways to fund a deal, including hard money, I have come across the idea of a Solo 401K plan and loaning to myself from the plan.Key facts that I can find are:  5-year term (normal prin+interest payments required at least quarterly), Larger of $50K or 50% of vested balance is the max loan, no credit check or specificity required about intended use of funds, failure to make payments/payoff on time are that plan treats it as a taxable distribution (early in my case), can loan at a reasonable interest rate which sounds like can be a prime+ type rate.....last WSJ prime was 3/22/18 at 4.75%. 

(not new, I owe 12k thanks to garbage warranty and bad loan terms, and it's worth between 8 and 9k))I am living with my failure on both of these, I look forward to reclaiming my car payment as savings, as well as renting out my rooms and building up a nice emergency fund. 

Starting without a solid employment income is a recipe for failure.

Failure to disclose the lease would then fall back to the seller and the seller would be liable for that $5000.So a contract indicating that the property will be delivered vacant is just fine. 

@Nimster Win Would urge you to never disclose your private details on the Internet.The restaurant/cafe industry has one of the highest failure rates of any industry.

Also big increases in value can push IRR further upon exit.I find passive investors with millions tend to be fine with 6 to 8% and prefer projects with equity growth long term and sponsors who are experienced for more safety.You as a sponsor do not want to do deals where the investors and lenders are getting some insane interest rates and money because it will set you up for huge failure.