If it's on your credit, you are on the hook for it.However, it shouldn't effect the loan process too much, a simple Letter Of Explanation should be able to get the job done with the correct investor. 

A great way to get started if you currently have a W2 job is to buy a house hack like a duplex or a fourplex where you can move into one of the units and continue to rent/manage the other units.

So they work a full time job and go to school full time. 

Definitely screen properly and don’t cut corners!

Since you have work history, if you get a job with salary income and a credit score above 640 (680 realistically), a conventional cashout refi is within reach as soon as you reach those metrics.

I'm really busy with my w2 job working all the time to fund my investments. 

They will typically take a cut of the development fee and it’s worth it.

Quote from @Mark Forest: The company I have invested with has done a great job explaining why this is happening and what they are doing about it. 

Hi Benjamin, I’m in japan and doing real estate investing here for about 8 years in different styles besides my full time job.

I know a great agent in the area who helped my friend buy in Ogden and did a great job negotiating.