Most first-time real investors can’t come up with the resources required to acquire a Manhattan high rise, for example, so they are left with two options: Give up on the idea of investing in CRE altogether or gain exposure to this asset class through an intermediary, like a publicly-traded REIT.

So this could be litigation exposure. 

Also, as the amount of the raise increases, the level of exposure to the firm's E&O policy necessarily increases which may warrant a premium on legal fees. 

Are they giving me 40 50 60 loans or do I need to keep finding new lenders once a bank decides they had enough exposure to my company.

@Michael NotoAs mentioned, the real thing you want is for them to have liability insurance, not only to limit your liability exposure for injuries on the property, but, more importantly, to cover your property if they cause damage by starting a fire. 

I live in the SF Bay Area, and invest in Portland, Oregon - so I guess I have 100% exposure to rent control now?

Most of our investor base would love to have exposure to work with them so we syndicate the deal for our investor base and give the operator a check for $5M to $10M but while lowering the minimums to say $50K or $100K. 

Thought this might also benefit you.1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

They had major issues with lead times and hitting their deliveries which was annoying, but we have also experienced an issue with the large sliding window in our master bedroom (seems a seal exposure/draft issue) already within a year or so.So I won't be buying Crestline again, maybe not fair but that's my data point...

There for I personally am limiting my exposure, buy focusing on flips and reducing my debt to equity ratio.