We were expecting to use the security deposit to help cover some of the costs but the property manager never collected one even though the lease required it.

Useful in that we can discuss here what is and what is not going on.The health warning at the bottom of the first page contains the following.THE COMPANY IS “TESTING THE WATERS” UNDER REGULATION A UNDER THE SECURITIES ACT OF 1933 FOR OFFERINGS OF OUR BITS THAT HAVE NOT YET BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION (SEC) RELATED TO CERTAIN PROPERTIES.

What is the security and guarantees?

You will have to do an LP unless they qualify under the securities laws.

For future deals, only pay security deposit, inspection, appraisal, and engineer cost up front. 

See what contracts he/she uses in order to secure deals.

What is the security the lender has on these deals? 

For example, maybe tenant couldn't pay rent one month and landlord agreed to use security deposit for rent.

And stepping outside that box is a risky thing these days.So you'll need to watch out for that as well as the extra level of protections necessary to secure the property for you and either provide a profit incentive to the unrelated party or protect them from a taxable event.

We have found not every seller agent fully understood our offer by just throwing this over the fence.