The financing can surely trip you up if the lender fails to show with the funds at closing or drops off and ghosts you. 

I did educate myself about syndication, networked and put together a group of high net worth people interested in doing what I wanted to do (we tried to syndicate, came close but failed).

They said it's in bankruptcy so it pays monthly $200/mo. and if the payor fails, I get redeemed with the 18% on the 7800k + the redemption value of 21k. 

These people are clearly the victim of some brilliant guru who told them how to retire early/escape the rat race/be their own boss/etc, but forgot to mention the part about it being really tough, and like 95% of people (rough estimate just from my brief experience here on BP) fail. 

the biggest indication of a investor failing in real estate is not having enough reserves to get through the rainy seasons of the investment where as people who can get through over a long period of time do extremely well.

And if their credit is trashed and they fail to qualify for a new place, then what?

Just a quick clarification for all that put the weight in their feed back as the "EDUCATION". 

We are having to build a lot of systems/processes around it's failings (i.e.

As I sold enough that I got full payment on to afford to do those types of deals and I can tell you I sold more RE than most in my market because I never let a deal fail because of downpayment issues..

Try it a few times if you think private investors or private money is just going to chase you and chase you or HML are so eager and have no criteria which most would fail to meet.