They aggressively de-lever to not only create more cash flow without having to buy more assets, but also because they are starting to think about estate planning and how to efficiently create a very comfortable life for their kids.Lots of debt, long term debt or no debt are all right answers.  

Both parties have the ability, if push comes to shove, to pay off the debt or refinance, if the other party breaches that trust. 

I just did Tony Robbins UPW in LA (15,000 people - life changing), and signed up for Mastery University, which put me back 10k to about 25k in debt or so.  

I care about what kind of payment I would have to make, how that affects my debt to income ratio, and if I can generate enough of a return to make it more worthwhile than paying down debt or investing in the stock market.

Whether that came from earlier deals refinancing out of bridge to roll to long-term debt or if it was for acquisitions, I don’t have data to answer.To your question about competing against high IRRs when raising capital—you are right.  

@Daniel TorresWhen you mention “investors” that plural means in most instances you would need to file for a sec exemption unless it’s one investor for one deal (or in CA can do trust deeds).It’s up to you whether you offer debt or equity.

The DSCR Lender wouldn't come after your assets before starting first with the foreclosure process The credit report is NOT what determines if you have personally guaranteed debt or not.

Equity raised, debt, or a combination?

There are debtor rights attorneys out there, but they typically deal in the owner occupied space, if these are in LLC's then there are still attorneys but they are probably not going to get very far in any type of settlement because there are probably personal guarantees in place or the lender will just take the property. 

So, investors put in capital as part of the equity (could be debt or preferred equity, etc.) for the purchase.