Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Sponsors fall under General partner with the management folks that find and manage the deal and asset right? 

We all fall somewhere on this spectrum. 

Most deals fall through because investor did not calculate these numbers accurately. 

I'm not saying you're wrong, but if all else is good with condition and location, then it falls on pricing 

@Elizabeth Nolan, to be clear, I think we all fall trap to our own egos, but that is a whole other can of worms.  

Hi Keith, not sure if multifamily is in your wheelhouse, but we wholesale properties in Northern and Central NJ that don't fall into our buy box.

In turn the seller can take action against you because there is an agreement between you and the seller.This is true UNLESS you did this deal as an actual "assignment" and the contract between you and the seller has "or assigns" as the buyer and you notified the buyer of the change in buyers prior to the deal falling apart.

I fall in the middle of this range - 2 LLCs, properties in different states. 

But at least the silver lining here is that your post will most likely get to a good number of people searching for this and discourage a lot of them from falling into their funnel.