I wanted to get feedback on how this concept works if it works at all There are a lot of misconceptions of getting business credit for real estate company.

You're making a common misconception by thinking it is safe to go into a lower priced market like Modesto. 

This is a common misconception that just because a lease states something, a tenant has to do.

Honestly, I wouldn't do seller finance if I expected buyers to pay on the note through maturity; the rate is high enough to motivate them to improve their credit and refinance as soon as they can.I'm not trying to suggest seller financing is better than rentals, just clearing up some misconceptions.

But I do want to point out the misconceptions people often have with 2nd liens, when done correctly. 

That clears up a lot of my misconceptions about Lis Pendens and the possible investment opportunities surrounding them.

@Justin G. there seems to be some misconceptions about what a syndication really is.  

It's a common misconception that you only need to reinvest your profit to defer your gains in a 1031.

Has a great post on misconceptions of the LLC

It's a common misconception that syndicated deals are only for accredited investors, but that's just the tip of the iceberg you are seeing above the surface that are mass-marketing their deal therefore it must be done as an Accredited only 506C offering.